When It Comes To Financing New Projects
You need to have your banker onboard, helping to financial these projects.
The key to making informed decisions on projects that strengthen your business begins with developing a detailed business project plan; you are unlikely to receive a loan without one.
At Hands On Accounting, we help you understand your business bank accounts, determine whether you are meeting your financial obligations, help you keep more money in the bank, and get you on track to qualify for a loan.
Here are 5 Tips business banking to successful when it comes investing in new projects. These tips will help set you up to make informed decisions regarding new projects financing.
1 . Build A Connection With Your Banker
Making your banker a reliable business partner is one of the best things you can do for your business.
Before buying equipment, research your purchase options and make a costing plan covering your business’s additional operating costs. Retain and review this information before visiting your banker, (as well as a credit check, personal credit score, and a credit bureau report about your company) so you can be ready for any questions.
2. Understand Your Credit Score And Business Operations.
Having the right credit mix helps you open an operating line of credit for your business. Avoid any debt collection and bankruptcy where your overhead is more than you’re bringing in.
Never use someone else’s credit card to secure financing. If you are getting a loan under another person’s name to lease a vehicle for example – it is a bad sign you are in difficult financial times. It is essential to bring this under control before taking on more debt.
3.Track and Manage Your Costing
Pricing your projects at too low a price point results in never being able to cover your costs. Going into debt is not a viable option if you do not have the finances or money IN to cover a new project’s cost. Tracking the cost of projects and pricing accordingly, results in better cash flow planning.
4. Establish Credibility
Support your facts and figures by researching 3rd party sources and mention favorable trends in changing markets. Be clear about your expertise in your industry, and show that you’ve done the homework. This requires doing your research on the project’s angel, prepared with a backup plan to compensate for losses.
Create a repayment plan for the loan and be passionate and focused on the facts and figures to increase the likelihood of receiving the loan.
5. Understand Your Financial Obligations
Don’t leave things to chances when making installment payments to the government. Avoiding payments to a government agency can cause your business never to recover.
Listening to our concerns early on helps you make payments to your vendors on time. For example, we may tell you to reduce hours worked or give employees vacation time off; it will help with the compliance and keep money in your bank account. Then we can help you pay less taxes by keeping monies held in trust by a tax accountant.
If you’re looking to take the stress out of bookkeeping and get a firmer hold on your company’s banking and finances to take your business to the next level, contact Hands On Accounting Today.