As a small business owner, you know that keeping your finances in check is critical to your continued success. But when your income is inconsistent, be it from late-paying customers or a lack of business during down time, it makes planning and budgeting a nightmare. Not to mention the added stress it brings each month. Here are a few ways you can better manage irregular income to keep your business on track.
1. Keep track of your income trends: While your income may be inconsistent, keeping track of your incoming funds over the course of a year or two will give you the opportunity to watch for trends in your cash flow. These trends, while not a guarantee, can still help you to better plan in the coming year for typically high or low months.
2. Plan for cash flow management while cash is flowing: Instead of being strapped for cash and reaching for your credit card during those inconsistent periods, apply for a line of credit to help keep your cash flow steady during one of your high-income months. Telhio Credit Union offers lines of credit and business loans that will give your business the peace of mind that additional capital provides:
- o Small Business Association (SBA) 7a or 504 Loans: for the purchase of land and buildings as well as the expansion or conversion of existing facilities.
- o Commercial and Real Estate Loans: for the purpose of purchasing or refinancing commercial or industrial real estate.
- o Business Lines of Credit: for payroll, working capital or short-term payable obligations, as well as a revolving line of credit to finance your business.
3. Always separate your personal finances from business finances: By keeping your personal and business finances separate, you’re not only keeping your finances organized, but you’re also giving credibility to your business. Separate business and personal accounts are crucial to helping you better manage bills, taxes and other payments, and help to reduce your personal liability in your business.
Telhio Credit Union has a variety of business products and services, such as checking accounts, lines of credit or business loans that can help your business succeed through any storm. To contact a member of Telhio’s business services team, call 614-221-3233, option 6.
Telhio is open to anyone who lives, works, worships or goes to school in Franklin, Fairfield, Delaware, Licking, Marion, Pickaway and Union counties. Founded in 1934, originally as the credit union for the Columbus Telephone Co., Telhio is a not-for-profit financial cooperative where its members are also its owners. Driven by its philosophy that members come first, Telhio is committed to the highest standards of responsibility and conduct. Telhio offers a variety of innovative programs, services and products to support its members’ financial needs. Telhio offers six branching offices throughout central Ohio and nearly 4,000 shared branching locations nationwide. Additionally, Telhio credit union participates in the highest level of combined federal and private share savings insurance available, insuring deposit accounts up to $500,000.*
* Federally insured by NCUA. Additional coverage up to $250,000 provided by Excess Share Insurance Corporation, a licensed insurance company.