Business Loans – Why it is important to pay their bills on time?
If you run a small or medium-sized business, you will probably know the phrase “an accident rarely comes alone“
With spending on things like inventory, manufacturing and advertising costs, hiring equipment and employee salaries, it may be a challenge to have enough working capital for the running expenses of a small business.
If one also adds one or a few bills then it can feel almost impossible to get everything to go together. Although you can often delay some bills, there are always bills that cannot be postponed.
Your relationship with your suppliers, customers and financial institutions is central to your business. It is here that you build trust, reputation and reliability. A good relationship can make a big difference, when you need to postpone a payment etc.
While it can easily feel hopeless when the bills start pouring in, there are four types of bills that require special treatment. Here we tell why:
1. Tax bills
We start with the biggest first. Taxes are something that you, as a small business owner, must not forget to pay. If you forget to pay taxes, you may be fined and have to pay large penalties.
If you know that you will need more time to pay the tax, then you should apply for an extension. It is better to apply for an extension than to risk a fine.
2. Your customers and suppliers
Make sure your suppliers have nothing to complain about. Because without suppliers and customers it is difficult to run a business!
If you have shown yourself to be trustworthy and have a good professional relationship with your customers and suppliers, then it is likely that you can negotiate a payment plan, or request a one-week or two extension.
Communication is a and o. Let your customers and suppliers know when you can pay and why you need more time.
3. Public utility services
Since taxes and payment for warehousing and manufacturing are large expenses, it is easy to ignore the current expenses such as Internet, heating, electricity and other services.
Again, it is important to communicate. Many service providers may plan to negotiate payment plans or wait for the payment. Whatever happens, do not forget about your service providers. Service providers can literally shut down your business.
4. Your employees
Last but definitely not least – always take care of your employees and those who struggle for your business to succeed.
It may happen that you, as an entrepreneur, can refrain from paying wages, but you cannot expect that from your employees. They have invested in your business in some other way.
It is illegal not to pay out wages, employer’s contributions and other fees on time.
Pay the bills on time, every time
As an entrepreneur, it sometimes feels as if you have to be able to make a knot on yourself to get everything to go around. Business was created so that small business owners would have access to fast, simple business loans of up to SEK 1,000,000. when they need it.
At Business we know that time is money and that every day and every penny counts. Funding from ordinary banks is often too complicated and slow to meet the needs of a small business. Many banks promise quick money, while the truth is that you often have to fill in groceries with paperwork, present their business accounts and then wait for a decision.
At Business it is enough to complete an application online, which can be done at any time of the day, every day of the week. The application takes less than 5 minutes to complete and companies can access working capital in less than one day.
When it comes to paying bills on time, you can rely on Business, and have one less thing to worry about.