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4 Easy Steps to Keep Your Business Loans in Check


The process of applying for a loan depends on where and who you intend to borrow it from, whether it’s private individuals or financial institutions such as banks. These days, it can be as simple as filling out an online application, submitting it, and waiting for the results.

Many small-time businesses often have trouble establishing their credit after a while because of various factors, some of which could include bad investments and less-than-ideal business practices that could have more cost-effective alternatives.

These factors often add up and could lead to things, such as increased debt and not being able to pay on time, all of which can negatively impact your credit score in the long run.

This is perhaps the most important secret for achieving a good credit score with your creditors. While it may seem difficult – and it will be – it’s not impossible. Here are a few steps you can take in your business to make sure that you can pay your loans in check:

  1. Keep all your information updated.

In order to be eligible for a loan in the first place, you need to give out crucial information on you and your business to the lending agency and the appropriate credit bureaus. The general rule of thumb when it comes this is that the more detailed and complete your credit profile, the better.

You should also watch out for public records that could be filed in your business’ name. These can include bankruptcies, court rulings not in your favor, and liens. These negative marks can make an astounding effect on your business credit report.

Even when you’ve already made good in terms of paying back your loans, potential creditors, financial institutions, or even future investors would at least think twice about your business when looking at your business’ credit report before investing.

  1. Step up your marketing strategies.

While you don’t want to get rid of paid advertising when it still nets positive results for your business, it may be worth it to consider certain cheaper alternatives, such as building your customer email list and using a referral program via recommendations from current customers.

Because potential clients are more likely to hire someone they recognize, networking should be seen as a more important priority over advertising. A wider network leads to more sales, which opens up to a wider network, and so on.

You can even cut marketing costs by doing most of the marketing work in house – because of social media, it’s now possible to reduce spending on traditional marketing, if not switch to online platforms for advertising entirely.

  1. Think bottom line, top-line, and break even.

As a business owner, these are the three terms that you should be intimately familiar with, as both measure are extremely useful in helping you measure your business’s overall financial health.  

Firstly, break-even is essentially the minimum amount of output your business must exceed in order to turn in a profit. This value isn’t generic and varies from business to business, with some having a higher break-even point than others.

Second, we have the bottom line – what’s left of the income after all the expenses have been deducted from the revenue, or otherwise known as “net profits”.

Lastly, the top line refers to your business’s overall gross sales, or revenue. When people talk about “top-line growth”, they’re essentially referring to the increase in this aspect. While it’s important to aim for an increase in this over time, it’s also just as important that your target top line is within reason for your business’s capabilities in production and sales.

  1. Employ cost-effective business practices.

It’s a known fact that any business needs to make more money than it spends in order to succeed and continue its growth for the long-term.

Because industries and businesses are becoming more competitive every year, every single increase in revenue or drop in expenses can impact your business significantly, whether it’s for the better or for worse.

In essence, it’s being able to avoid waste and cut certain corners in your business to cut expenses and increase efficiency wherever possible. These practices can vary from company to company, and the best way for you to find out which corners to cut is by taking a close look at your expenses and income – in other words, bookkeeping.

How Accounting Services Can Help

Small business owners should avail of professional accounting services. The decision of setting up the right type of business type that will benefits you in terms of assets and tax is something that should be consulted with.

Being your own bookkeeper and preparing financial statements by yourself can also be incredibly time-consuming, which a reliable accounting service can do for you easily and effectively.

Aside from routine bookkeeping tasks, many accounting firms in Singapore will also advise clients on how to make effective financial strategies that will advance your business or help it weather through when times can be difficult for keeping the business afloat.

If it’s your first time with a loan or if you’re unfamiliar with the process of acquiring your credit portfolio, an accountant or bookkeeper will be more than happy to help you with the necessary procedures and paperwork, as well as taking the necessary measures to pay your debt on time.


(Disclaimer: this list is compiled in no particular order.)

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