Whether you’re having a season of inactivity, being affected by a slow economy or just dealing with personal circumstances, it can be hard to go through a business rough patch when you don’t have capital. Here are four tips to help you survive hardship.
Keep Business and Personal Finances Separate
Don’t use your business finances to pay personal bills. Don’t mix business expenses into your personal affairs. It could get really messy tax-wise and businesswise.
Tighten Your Belt
It sounds obvious, but when you’re going through a crunched budget, you need to cut the slack. Consider every expense and deem it essential or non-essential. Get rid of the non-essentials until your financial situation turns around. It’s not always easy to make the big cuts. Start small with recurring expenses. What can you do yourself?
Negotiate With Vendors and Business Leaders
If you’ve hit a rough patch, talk to some of the people you’ve been doing business with and ask to get a lower rate for six months or a year to help you through. Maybe you can get a credit extension from some places to give you breathing room. Don’t be ashamed or embarrassed. These same businesses could be a rough spot at some point too.
Work With a Business Lender That Has Options
Some lenders will negotiate with you while you’re in a business rough patch. Look for smaller lenders who will help you find a microloan or provide alternative lending while you’re experiencing problems. Have your accounts in order and show that you’ve been paying off debt and earning well, but you’ve hit a bump. Some lenders may even give you a couple of months after distribution before you have to make substantial payments.
Need funding to get through a business rough patch? Contact Purevue Capital today to see how we can help with financing.