Operating a small business during the coronavirus is not easy, but there are two main ways you can keep your small business afloat during and long after the coronavirus situation. The two main ways to maintain your small business are keeping a good credit score and having an emergency fund at all times. These two factors will serve as a backbone for your business in the event of hard times. However, if you ever find yourself on the brink of bankruptcy, be sure to consult with one of our Tennessee bankruptcy lawyers for guidance.
MAINTAIN A STRONG CREDIT SCORE
Maintaining a strong credit score may sound tedious or unnecessary compared to other small business factors, but there are several reasons a strong credit score can help your small business. For one, a strong credit score increases your chances of receiving loans in the event that you need them. If something goes wrong during the coronavirus, you might have to depend on a small loan to get by.
One of the more obvious ways to maintain a strong credit score is to not miss any payments. A way to ensure you do not miss a payment is to write down payment reminders on a calendar or set up reminders on your phone. You can also improve your score by paying off bills every two weeks instead of once a month.
Not everyone may do this, but reviewing your credit score each year can help you find mistakes. You have the option to refute any mistakes made on your credit score by letting the credit agency know. This may not work every time, but at least this gives you a chance to improve your credit score.
When you have multiple credit cards, pay off the ones closest to their limits first. Close new rather than old credit card accounts.
ALWAYS HAVE AN EMERGENCY FUND
An emergency fund may initially seem unrelated to maintaining a small business, but what an emergency fund serves to do is protect you and your business in the event of an unexpected financial situation. Building an emergency fund might sound tedious or less important compared to funding a small business, but without an emergency fund, there is a great risk for financial collapse when something major happens to drain your finances.
Automatic reoccurring transfers into your savings account is one of the fastest and simplest ways to build up an emergency fund and after a while, you will not even notice it. Instead of spending tax refunds or stimulus checks, put them into your savings or at least a portion of them into your savings.
BANKRUPTCY ATTORNEYS IN CHATTANOOGA, TN
Keeping your small business alive during unstable economic times is often scary. Feel free to reach out to our lawyers in Chattanooga, Tennessee, and North Georgia anytime you have questions about tough financial situations or bankruptcy.
Call Tom Bible Law today to talk with one of our Bankruptcy lawyers in Tennessee at (423) 690-7712 for a free consultation. Our team of Tennessee bankruptcy attorneys can be found in Chattanooga, Kingsport, and Tullahoma.