S – t – r – e – t – c – h Your Cash: How to Save Money While Growing
Is your small business primed for growth or struggling to pay the bills? Here are 5 top tips to help you stretch your cash.
1) Review all expenses, even the little ones.
Do an overall analysis of all small business expenses. If a cost isn’t providing a return on investment, cut back to the bare minimum or completely eliminate that expense.
2) Embrace technology: go paperless and use the cloud.
Run a paperless office to lower storage costs, eliminate printing expenses and streamline your operation. By scanning documents you can send and share information easily – that saves your small business time and money. Cloud computing has created a technology revolution for small businesses by offering access to a range of capabilities that typically only larger companies can afford. Your business can join the “Cloud” to access everything from data backup to customer relationship management systems.
3) Explore low interest options to pay down debt.
A 0% credit card balance transfer can save you a significant amount of money. For example, if you had a $5k balance on a card with a 17% APR and transferred the balance to a credit card with 0% intro APR for 15 months, you would save $862 in interest alone. Keep in mind that special offer cards have a limited time – usually less than a year – where you can benefit from 0% interest. After that, rates often skyrocket. A fast and easy option is to explore getting a low-interest SBA loan to consolidate debts. At SmartBiz, debt refinance is one of the leading uses of loan proceeds because our long term (10 years) can lower your monthly payments dramatically. Check out what you need to know about SBA loans here.
4) Use an SBA loan to buy equipment
Consider using an SBA loan to purchase equipment. Loans, like the one’s offered by SmartBiz, can allow you to pay off your equipment over 10 years. If you’re buying a $100,000 piece of equipment, for example, and use a SmartBiz loan to finance it – your monthly payments will only be about $1100 per month.
5) Avoid bank fees
It’s no surprise that banks are looking to squeeze more revenue out of fees these days. However, Bankrate’s Greg McBride says it best, “As consumers we’re not hostage to these higher fees, but we’ve got to be on our toes and be proactive about avoiding them.” Do everything possible to avoid fees from ATM use, bounced checks or debit card costs. If you can cut substantial costs by switching to another bank then it may be just what you need to do to save your company money in the New Year.
Speaking of banks and avoiding fees, are you considering getting an SBA loan to pay off debt or grow your small business? An SBA loan is typically offered by banks; however, alternative lenders like SmartBiz reduce the typical bank SBA lending process from months to weeks, offer longer terms, lower rates, and lower monthly payments than other loan options. You can learn more about SmartBiz SBA loans here.