Are you a business owner concerned that you still may have cashflow issues in the months ahead? Do you wonder what you can do to rearrange some of your debt or provide additional cashflow? 

Today I’m going to offer a few tips that can help you change what your current position is into something with some better cashflow. 

Number one: look at restructuring your current debt. If you’re operating with credit cards that have higher interest rates, perhaps you can fold that into a lower interest loan. 

Number two: along those lines is look at SBA loans. The SBA doesn’t actually offer the money themselves but partners with banks. But they do back the loans that are offered so that banks aren’t as scared to offer funds to businesses who qualify. So not only did the SBA earlier this year have PPP and EIDL loans, but they have their traditional loans available as well.

Also understand that adding additional loans or restructuring your debt may not work. You may need to just look at your expenses and cut back where necessary to do with what you currently have, rather than expanding your debt to acquire additional funds. 

Make sure that you’re talking with your bank. You hopefully have a relationship with your business banker. And if you have a loan with them, they may be able to reduce the payments, change the terms or work with you in some other way. 

And finally, look into having a credit line. This is not money that requires a payment unless you pull funds out ahead of time. So having a credit line available means you have cash available when necessary, but you don’t have any payments or interest until you start using those funds. 

I hope you found this information helpful. If you have additional questions, feel free to reach out to Affordable Bookkeeping 310-534-5577 or contact@abandp.com.

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