Tuesday, August 13, 2013, AM | Leave Comment
Maintaining a respectable and clean financial reputation for your company has become a crucial task today. Companies that hold a good and impressive financial records often catch the eye of the suppliers as well as customers.
In addition to this, with a good financial record, you can also easily apply for all kinds of business loans.
Here are the top three tested and smart tips for maintain a good financial reputation for your business.
Settle your accounts what are payable on time
Paying all your financial obligations on time can actually aid in building the financial reputation for your both online as well as offline business.
Unfortunately, there are usually a large number of bills which a business needs to pay in order to keep a smooth workflow in your organization or company.
Therefore, you need to ensure that all your business bills which include but are not limited to water bills, electricity bills, telephone bills, internet bills and other related organizational bills are strictly paid on time.
There are several reasons for supporting this claim. Firstly, any form of delay in the payment of any kind of bill usually attracts fines and other penalties which only add to your next month’s bill thereby burdening you more.
Also, do not forget that your business can lose the particular service in case you fail to pay the concerned bill. At such a time, both your sales as well as reputation will be affected in a negative way. The service providers can even stop their services to you or blacklist your business.
Make your business payments in full
You must always try to make all the payments for your business bills in full. Partial payments can actually trap you in the unnecessary and complex cycle involving incremental obligations. Once you get stuck in such a thing, it is always hard to escape from a constantly increasing debt.
For example, say if you pay only half of your bill, then the other half is added to the next month’s bill. When the bill arrives for the next month, you would have to pay an additional half of the previous bill. Similarly, such a flow of payment does not only gets complex but is also hard to pay.
In case your business is caught trapped in such a pitfall, then this will certainly affect your financial reputation and record. The biggest foe for your business in such a situation would be the unfavorable feedback. Also, when your business would receive negative comments and publicity from the other competitive establishments, then your business would certainly suffer and get down.
Avoid applying for simultaneous business loans
Being a business owner, it is usually tough to avoid the need for a business loan. When you do not have an enough budget for any of your business plan then there are chances that you will seek a business loan.
However, it does not in any form implies that you would have to apply for all your business loans in succession that is one after the other simultaneously. Relax and try to take just one loan at a time. In such a way, it will never get hard for you when it is time to pay it back. In other words, your business would acquire high credit and therefore a good reputation.
For example, say, if you aspire to start a new business project or want to expand an existing one, then try to seek a financial institution which offers business expansion loans. Try getting an impressive as well as a good credit rating and link it further to all your financial records.
Shoal Levi is a financial advisor who holds a management degree in finance. He has been in the real estate industry for seven years and writes for different finance magazines.