It Pays to Save


Life is unpredictable, and no one knows that better than today’s business owner, who faces the challenges of managing a business in an uncertain economy. While we’d all love to have crystal balls to see into the future, the best we can hope for is often a solid strategic plan that anticipates challenges before they occur. Still, no one can predict all the challenges that a business is likely to face in its lifetime.

facts show that saving money is actually a proven way to help the economy, among many other benefits.So how can you put your business in a better position to manage unexpected expenses?

The answer is quite simple: Save for them. It’s critical for businesses to have access to capital for unexpected expenses, and the reality is that obtaining credit isn’t as easy as it used to be. Now more than ever, businesses must have savings on hand to meet emergency expenses.

One way to accomplish that is to manage cash flow carefully and make the most of your account balances. Here are some simple steps you can take to help you build savings and peace of mind:

  • Pay your business first. It’s important for businesses to have funds in liquid savings. Utilize services like online banking to set up automatic transfers from checking to savings each month.
  • For higher return potential, consider investing in Certificates of Deposit and stagger the maturity dates so that you have funds available when you need them.
  • One of the ways many businesses build savings is through sweep accounts. With a sweep account, any excess balances you don’t need in your checking account are automatically swept out of your account and into an overnight investment vehicle. This way, you can earn money in your sleep by putting excess balances to work for you.
  • If you have longer-term savings goals for your business, consider the benefits of investing. There is no shortage of stocks, bonds, and mutual funds that offer higher return potential. You can arrange to have monthly withdrawals made to an investment account to allow you to save over time and lessen risk.

Keep in mind, though, you’ll want to make sure your emergency savings funds are fully protected with deposit insurance.

A solid saving plan works

We’d be happy to help you build a savings plan that works for your business. To learn more, speak with a business banker at your nearest branch or call us. You’ll discover that a little planning can go a long way in helping you protect your business – and build for the future.

 

Related Articles

Leave a Reply