Looking to expand your business in South Africa? Large scale enterprises often enjoy an impressive choice of options when it comes to financing growth; however, it’s often a different story with small businesses. Read on for 3 useful finance tips to grow your business.
- Find a Way to Access Reliable Bridging or Emergency Capital
Banks and other credit institutions are increasingly inclined to lend capital to small business owners. A solid business plan and a good credit rating are more likely to fetch you loan approvals. There are three reasons why it’s a good idea to gain access to affordable business capital:
- You can grow your company by introducing new services, products or invest in other businesses.
You will have access to a reliable line of credit during difficult economic times. The line of credit will help you meet payroll requirements and day-to-day business obligations during a cash crunch.
There is the likelihood of refinancing old debts at lower loan rates. In other words, you can use affordable rates to plug old debts
- Keep your Business and Personal Accounts Separate
Lack of knowledge about business credit may prevent you from accessing business loans that you need for your business to thrive! Keeping your business credit separate can protect your personal credit score. Here are 3 ways to keep your business and personal account separate::
- Establish your business as a separate legal entity. Consult your tax advisor and decide on the best business entity that suits your business requirement.
Use a business account for settling business expenses. If you need to pay yourself, deposit the money into your personal checking account.
Build a business credit history: To begin apply for a business credit card instead of using your personal credit card.
- Trim Down Unnecessary Expenses
Every business has two types of costs: Fixed and variable. The fixed costs have to be incurred regardless of whether you make money or not. But variable expenses can be kept under control.
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