How To Save Your Business’s Credit From An Unstable Economy

Things aren’t the way they were before. This is the new motto of the new millennium. The economy is extremely unstable, yes, even more than before.

The economic conditions seem to be improving, but there are still rocky times ahead. If things were stable, the Federal Reserve wouldn’t be printing money and pumping billions of dollars into the economy every month.

So what does this mean for small businesses? It means that you need to prepare financially and most of all, make sure that you protect your credit. Without credit, your business is up the creek without a paddle.

If you need credit repair services, there are a host of solutions out there for you. But since you’re already here, let me offer some ways you can do protect the credit you already have and improve it.


Extra Cash Reserve

All wise business owners have at least a few months of operating budget in cash reserves. In an unstable economy like ours, you need to have at least 6-8 months of operating expenses in the bank. Keep it in a money market account.



This is really hard for most small businesses, but it must be done. You have to be more conservative in an economic environment like ours.

This may mean selling off some assets. And as hard as this may sound, you may need to downsize your staff.

Employment costs are usually the biggest expense for a small business. It’s also the most emotional component to the business. That is why it is both hard to lay off staff and also extremely important that you do so if necessary.


Plan for Slower Growth

In a booming economy, you can grow as fast as you can. In an unstable economy like ours, you have to slow down and plan expansion very deliberately.

Part of saving your business credit is to not take out too much to begin with. If you take out loans and credit cards very deliberately, you won’t get into as much trouble. The more credit you take out, the bigger the possibilities of your ruining your credit.


Don’t Use Business Credit for Personal Use

This is a huge mistake that business owners make because it’s so tempting. They use business credit to pay for personal stuff, and it gets them into serious trouble.

The family gets used to the buying power and adjust their lifestyles. Then they get addicted to it and can’t get off of using that business credit card.

You have to be really careful here because you could be doing something illegal. At the very least, you are using business finances for things that won’t make money for your business.

For businesses, credit is king. So take care that you adjust to the changing conditions in our economy and in our world.

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