GOOD CREDIT MAKES ALL THE DIFFERENCE

Why is good credit so important?

When was the last time you spent quality time with your finances? If you’re like most people, that would be almost never.  When you run your own business it’s essential that you not only spend time with your finances on a regular basis, but you also take care of your credit score. As if there isn’t enough for business owners to worry about!

Running a business involves a lot of juggling – plates, balls, kids, customers … it’s exhausting. Taking charge of your business accounting is an activity that deserves priority, since preventing your finances from falling in the red is essential to keep your business afloat. But finding the time to do it, is a whole other thing. So, it’s essential to prioritize your time and keep on top of the key factors that will affect your liquidity and, ultimately, your credit score.

A poor credit score will impact everything and it’s particularly painful if you need to secure some working capital and you can’t get it, because your personal score is too low. One of the best ways to keep on top of your credit score, is to know what’s happening with your whole financial picture.  You’ll be amazed how setting aside time to focus on your finances reduces your stress and helps keep you on track. We’re not talking about dedicating hours at a time, we’re talking making it a regular thing.

Here are a few simple tips to help you focus.

First, set aside 15 minutes or half an hour weekly to organize your business accounting. Compile your receipts, either enter them into your accounting package yourself or send them to your bookkeeper. DON’T LET IT PILE UP!

Second, make sure your business and personal finances are separate. And that is where most small business owners fall over. Easier said than done, I know, but it is essential. If you’ve got bad credit on either side of the fence it’ll hurt your business. If you have bad credit (personal or business) it might be worth considering taking part in a credit builder program. We work with some excellent partners and can help you get started.

Third, be assertive when it comes to your invoices. Don’t allow late payments to happen! Again, easier said than done sometimes, but you HAVE TO DO IT!

Fourth, do an annual audit of your business to see what is working and where cuts should be made. Ask your accountant to help you with that. They will be able to identify potential risk areas and help you get a handle on your real costs.

Fifth, evaluate your business relationships. Examine the successful ones and create a way to duplicate. Positive attracts positive. Stick with the people who help you succeed, say goodbye to the rest.

We’re here for you.

WHEN THE BIG BANKS SAY NO, FITUFINANCE CAN HELP.

Call today! 516.268.0350