When it comes to finance many small firms struggle which can cause issues for the Productivity Ninjas amongst us! With a third of firms turned down at least once for a business loan or funding over the past three years, and 12 per cent having applications rejected on multiple occasions it pays to be clever with your finances.
Here are Businesscomparison.com’s tips for becoming a Finance Ninja…
1. Compare deals – it could save you money
Whether you’re looking for business energy, loans, insurance, a commercial mortgage or funding to grow your business it’s worth doing your research to find the best deal. Time management is a major challenge for small business owners who juggle multiple tasks on a daily-basis. However, researching the best value products does not need to be time consuming! Comparison websites are a fast and easy way to compare deals on the essentials for your business. Let’s face it you probably already compare on your car insurance, holidays or even your weekly food shop so why not extend it to the items you need for your business?
2. Look at the alternatives – there are other solutions out there
To be a Finance Ninja you need to educate yourself about the different options available to you. Alternative finance may take the form of a bridging loan, asset or invoice finance. Tens of thousands of small businesses see their loan applications rejected by the banks every year which leaves them unable to fulfill their full potential. Figures from the British Business Bank (BBB) reveal there’s still a large group (38 per cent) of smaller businesses that give up after being rejected by the first financial provider they’ve applied to. Alternative finance is not for everyone but it’s worth considering if the doors of the big banks have been shut in your face.
3. Make sure invoices are paid on time
A major financial headache for small business bosses is making sure customers pay up…on time! Slow payments cost the UK’s 5.5 million small businesses time and money. A whopping £26.3 billion is owed to small and medium-sized businesses. Slow payments can cause a drop in productivity and cause major stress. Don’t let your business fall victim to customers who won’t pay up. Send invoices out promptly, make sure they are accurate and agree on payment terms in advance. Disputes only lengthen the process so be clear about your expectations from day one.
4. Become a book-keeping whizz
Consider ditching the pad and paper and switch to digital bookkeeping software, get a separate business bank account for funds, keep your receipts and don’t leave everything to the last minute. If bookkeeping causes you stress then consider outsourcing the task. Effective time management is crucial to the finance ninja so getting outside help is well worth it if it helps you keep on top of your finances.
By Philip Brennan
Philip is the head of Businesscomparison.com and a Productivity Ninja at heart. Why not try Businesscomparison.com to compare the best deals on business energy, finance, insurance and bank accounts quickly and easily.
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