As a savvy entrepreneur, you probably already know the importance of saving in your personal life, but building your savings for your business is just as important. An unsteady cash flow combined with unexpected and costly emergencies, like pipes bursting in the office or the company car breaking down, can be serious problems without a savings safety net. Here are a four tips for saving in your business:
1. Sign up for automatic transfer: Putting money aside each month can be difficult if you have to do it yourself. Sign up for a monthly automatic transfer into your business savings account. After the first month, you won’t even miss the extra money going to savings. And, you’ll be surprised how quickly it will add up.
2. Invest in a business CD: If you want to earn higher interest and can afford to place your money in deposit for a set period of time, a Certificate of Deposit could work for you. CDs earn higher rates of return, but the money deposited must remain in the CD for a specific period of time. In a CD, your deposit is secure and insured, and interest is compounded and paid quarterly.
3. Utilize your line of credit: You may be hesitant to use your line of credit other than just for emergencies, but it’s also there to help avoid emergencies. When you’re constantly paying for company expenses, saving might seem impossible. Consider using your line of credit to help pay off expenses during tight months so that you can always afford to put a little in your savings account.
4. Apply for a business loan: Need alternative financing to make a large purchase, but don’t want to break into your savings? Instead of using a credit card with high interest rates, consider applying for a business loan to help make the purchase and keep your savings intact.
Telhio Credit Union offers an array of lines of credit, business loans and business CDs that will give your business savings peace of mind. Contact our business lender representative today at 614-221-3233, option 6 to learn more about our business services.
Telhio Credit Union is open to everyone who lives, works, worships or attends school within Franklin County and surrounding communities. 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 seven 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.