4. Take care of your business and personal credit
Most of us don’t think about our credit scores until we need to access funding of some kind, whether it be a credit card or a short-term business loan. However, a poor credit score can make it harder to secure funding when you need it the most. And, if you are approved, you may find that your rates are higher and terms less flexible.
Coping with financial setbacks is easier with a healthy credit score, but it can do more than that. Good credit makes it more likely that you can grow and nurture your business the way you see fit. Have a once-in-a-lifetime growth opportunity? Want to take advantage of deeply discounted inventory? Good credit will make it easier.
How do you improve your credit? One way is to pay every bill on time every time. If possible, you may even want to pay them early.
When you make regular payments on your loans, credit cards, or other debt, it can also help you improve your credit score. Just make sure that the lender reports activity to the major credit reporting agencies.
Managing a seasonal business means being keenly aware of the expected — and unexpected — ups and downs. By forecasting and budgeting, you can position your business for success. Of course, it also helps to have a contingency plan with some go-to resources, like QuickBooks Capital, that can help you weather the storm.