You’ve received a loan and is eager to start working it. Hang on and spare us three minutes as we share with you some tips to maximize the benefits of your loans!
1. Proper cash flow management
Cash Conversion Cycle
The most important thing is to ensure that you have sufficient short-term asset- cash, to manage your daily business. This will allow you to take on any opportunity as it arises.
A way is to shorten the process of receivables by improving and keeping track of your payments received from customers, thereby reducing the account receivable turnover. Exercising bargaining power is another way to prolong the payable cycle so as to reduce the need for additional short-term financing.
Review of Cost
Spending is as easy as it sounds. Hence, there is a need to keep track on your business expenses to prevent any over or misuse of budget.
2. Focus on Long-Term Benefits: Publicity
It is a cost-effective method to invest part of the loan into publicity and marketing for your own business as the benefits goes along way. Think back about the first time you saw an advert on a product. There’s a 90% chance that you’re still using the product. And the fact that you remembered the advert goes to show the power of marketing.
Written by Nikita Ng, Business Associate @bizsquaremc
Do you have any ideas and strategies in mind to growing your business and want to seek more funds to realise them? Reach out to us and our representatives will be able to assist you further.