How to Protect Your Business’s Funds in Uncertain Times
Bank closures, recession, global pandemics – you never know what threats you’ll face when you own a business and how they’ll affect your bottom line. Protecting your funds during uncertain times is crucial for the survival of your business. Use these tips to ensure your business’s financial stability during times of uncertainty.
Protect what you’ve worked so hard for when uncertainty hits.
Published: April 17, 2023
What We'll Cover
- Steps to proactively manage your money to lessen the struggle during times of uncertainty
- Deposit protection by the federal government
- When to apply for a business loan
- How to get financial support during uncertain times
Bank closures, recession, global pandemics – you never know what threats you’ll face when you own a business and how they’ll affect your bottom line. Protecting your funds during uncertain times is crucial for the survival of your business. Ensure your business’s financial stability with the following tips.
Monitor Bank Account Activity
Use online and mobile banking to monitor your cash flow and balances regularly, every day if you can. Set up customized alerts to notify you about account activity, so you can talk to your financial institution right away anytime you notice anything suspicious.
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Create an Emergency Fund
Having an emergency fund is essential as a business owner. Aim to have at least 3 to 6 months of funds saved that can cover your monthly expenses during uncertain times. Consider a high-yield savings or money market account for your emergency fund. This way you’ll have easy access to that cash when you need it, and it will earn more interest over time.
Even in uncertain times, know that your deposits are protected by the federal government. At a credit union, each depositor is insured up to $250,000 through the National Credit Union Administration (NCUA).
Secure Funding if Needed
Uncertain times can make finances more of a struggle, whether because of interest rates rising on loans or increased prices due to inflation. It’s important to secure financing before uncertainty hits. If you need a business loan, credit unions are a great option because they offer lower interest rates on loans than bigger banks. SBA loans are specifically designed to help small business owners and entrepreneurs who might have a hard time finding affordable financing.
Don’t Go It Alone
Partnering with a business banker dedicated to your needs can help you navigate uncertain times. Your financial institution’s business team can provide guidance on financial management and options available to you.
- Monitor your bank accounts regularly to keep an eye on any suspicious activity.
- Create a 3- to 6-month emergency fund.
- Your business deposits are federally insured whether you choose a bank or credit union.
- SBA loans can help small business owners who might have a hard time finding affordable financing.
Uncertain times can bring stress and anxiety to your business, but doing prep work to establish an emergency fund or secure funding while monitoring your accounts regularly can help you stay on top of your finances. Partnering with a financial institution that you can trust has your best interest in mind ensures you don’t have to go it alone during challenging times.
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APR = Annual Percentage Rate