4 financial tips to prepare your business for the rebound

By Citizens Staff

Three out of four business leaders expect the economy to return to pre-pandemic output by the end of 2021. Putting your company on solid financial footing now will help you make the most of this anticipated recovery.

Be ready for opportunities and shortfalls, and shore up your company finances in the following ways:

• Choose the right financing. According to GetApp, 92% of small businesses reinvented themselves with new delivery channels and offerings in 2020. This year, financing might help you expand to meet new market needs or spruce up your company location to bring customers back in the door. For example:
  • A term loan could help you purchase inventory or assets, or a line of credit (LOC) could ensure you have available cash to sustain a new initiative even if cash flow slows.
  • A business mortgage can aid you in buying, expanding, or refinancing a business property.
  • SBA loans may be a fit for companies with limited credit history. With your business banker, you can explore which is the best fit for your plans this year.
• Spend wisely. According to the Paychex Pulse of HR Survey, over 38% of companies are investing in technology to support a productive transition of employees back to the workplace. Tools and equipment that help your employees work more efficiently — updated machinery, delivery vans, or technology — have the potential to increase revenue and boost profits this year.

• • Your cash flow needs and how frequently you may want to upgrade.
  • Potential tax deductions related to a purchase.

Use this tool to calculate potential costs for lease or purchase, and then speak with your financial advisor to understand how flexible financing can support your endeavors.

• Improve collections. Any chokepoints or slowdowns in collections may lead to cash flow problems that can impede your business momentum.

Several steps can help you fine-tune company collections:

• • Systematically gather and update important billing details, such as purchase order numbers, invoice contacts, and submission procedures. Slow payment issues are often a result of invoice errors or missing information.
  • Verify invoice details each time your company creates an invoice. Collection services can help you manage and track this information.
  • Speed up your access to cash. EZ Deposit lets you scan or photograph checks or money orders for quick deposit via your computer or smartphone. Merchant Services can provide speedy access to the money you’re owed by enabling you to accept credit and debit cards.
• Employ careful cash management. When you hold onto company funds for as long as possible and streamline payments administration, you can be ready to meet your company’s cash needs.

Online bill pay systems can help by:

• • Enabling you to schedule payments as close to the due date as possible from your desktop or mobile device.
  • Saving your company time and money. With payment information stored securely online, you can pay bills more quickly with fewer errors.
  • Making it easier for you to track expenditures and find opportunities to consolidate spending.

Position your company to make the most of this year’s potential by building a solid financial foundation. A skilled partner like Citizens can guide your planning, so you’re prepared for a successful year