We all know that it takes money to make money, but it’s also important to remember that money costs money, especially when you run a SME. One of the biggest cognitive realignments a business owner must face is the realization that managing their business’ finances is a different beast to managing their domestic finances.
Credit management is a vital skill when running a business, but some companies are better able to handle their credit management than others. In a time of historically low interest rates new business owners can feel like kids in a candy store of cheap (or free) credit, with the commercial sector saturated with 0% finance and fixed term interest-free credit. It’s important to remember that there is always a cost to credit. While companies like Capital Alliance can be extremely helpful in mitigating the cost of credit to the fledgling entrepreneur, it’s still vital to know how to box clever when managing your credit.
Through fluctuations in the market and economy, you need to know how to make the whims of the financial climate work for you.