The global ‘Credit Crunch’ is having an impact on many
businesses and it is now as important as ever that businesses
manage funds as efficiently as possible.
Managing money has always been a major responsibility for
businesses of all sizes, but it is of even greater importance
for smaller companies with limited finances, as they often do
not have the surplus funds needed to grow without borrowing.
The lack of credit in the markets at the moment has meant that
companies of all sizes need to take a good look at their
business banking arrangements in order to ensure that they are
making the most of their funds. Rather than seeing the credit
crunch as a barrier to profit and growth, it can be an
opportunity for companies of all sizes to re-examine their
business model in order to find savings and to look at areas
where they can reduce costs in order to find additional money to
fund their plans, without the need to borrow.
Perhaps the first place that a company should look for savings
is in their banking arrangements. Many of the high street banks
have a number of fees that apply every time you pay in a cheque
or deposit money in your account. Overdrafts can also be a
significant cost due to interest charges. By switching to a bank
that offers a free business current account to customers, it is
possible to save a decent amount of money each month that can be
used elsewhere.
Another area that all businesses should look at is the way in
which their customers pay. Many small businesses do not have
sufficient time to chase invoices, or give their clients 90 days
in which to pay for goods or services. Where possible, try to
get clients to pay more quickly – that way you will have the
money in your account earning interest as soon as possible.
When you have identified savings within your business, and
implemented the changes necessary to your structure to get the
most out of every pound of revenue, you should think about what
to do with the additional cash you have in your operation.
The best thing to do with spare funds is to open a special
business deposit account that will pay you interest on your
savings. This way, rather than simply having the money lying
around doing nothing, you can earn interest on it that can be
used for bills and other costs. With an instant access savings
account, you can put the money in as soon as you receive it, and
then simply transfer it into your current account as required –
that way all of your spare cash can be working for you.
One of the main things that you need to consider when choosing
a business bank to suit the needs of your business is the ease
with which you will be able to contact them and manage the day
to day running of your accounts. While most banks now offer the
ability to access money and accounts online, it is important to
be sure that they also offer a dedicated business manager that
you can talk to when you need additional help or advice.
businesses and it is now as important as ever that businesses
manage funds as efficiently as possible.
Managing money has always been a major responsibility for
businesses of all sizes, but it is of even greater importance
for smaller companies with limited finances, as they often do
not have the surplus funds needed to grow without borrowing.
The lack of credit in the markets at the moment has meant that
companies of all sizes need to take a good look at their
business banking arrangements in order to ensure that they are
making the most of their funds. Rather than seeing the credit
crunch as a barrier to profit and growth, it can be an
opportunity for companies of all sizes to re-examine their
business model in order to find savings and to look at areas
where they can reduce costs in order to find additional money to
fund their plans, without the need to borrow.
Perhaps the first place that a company should look for savings
is in their banking arrangements. Many of the high street banks
have a number of fees that apply every time you pay in a cheque
or deposit money in your account. Overdrafts can also be a
significant cost due to interest charges. By switching to a bank
that offers a free business current account to customers, it is
possible to save a decent amount of money each month that can be
used elsewhere.
Another area that all businesses should look at is the way in
which their customers pay. Many small businesses do not have
sufficient time to chase invoices, or give their clients 90 days
in which to pay for goods or services. Where possible, try to
get clients to pay more quickly – that way you will have the
money in your account earning interest as soon as possible.
When you have identified savings within your business, and
implemented the changes necessary to your structure to get the
most out of every pound of revenue, you should think about what
to do with the additional cash you have in your operation.
The best thing to do with spare funds is to open a special
business deposit account that will pay you interest on your
savings. This way, rather than simply having the money lying
around doing nothing, you can earn interest on it that can be
used for bills and other costs. With an instant access savings
account, you can put the money in as soon as you receive it, and
then simply transfer it into your current account as required –
that way all of your spare cash can be working for you.
One of the main things that you need to consider when choosing
a business bank to suit the needs of your business is the ease
with which you will be able to contact them and manage the day
to day running of your accounts. While most banks now offer the
ability to access money and accounts online, it is important to
be sure that they also offer a dedicated business manager that
you can talk to when you need additional help or advice.
No comments:
Post a Comment