Business owners will do well to think about opening a business savings account while they’re looking for San Diego banks that might qualify them for small business loans. When fully utilized, a business savings account can be one of your best business weapons, so make sure that you’ve got it in your arsenal. Besides the interest, business savings accounts are great when tax time rolls around as well as for both the good times and the bad times.
An Umbrella on a Rainy Day
Your business will undoubtedly see some bad days, and possibly even some bad weeks and bad months. During the financial rainy season, a business savings account might be just the thing you need to keep your doors open and the lights on. There’s also a chance that you might lose one of your biggest customers or get hit with a lawsuit, which can drain your funds even if you have insurance coverage for lawsuits. It never hurts to have some cash stashed away for the hard times.
Instant Cash on a Good Day
You should think about opening a business savings account for the good days as well as the bad. You never know when one of your suppliers will be willing to give you a steep discount as a limited time offer. You won’t be able to take advantage of the offer of you don’t have any extra money on hand. You also never know when you suddenly get a big order from a store, but have to ship the order as fast as you can, which might require extra money.
There’s also a chance that one of your biggest industry competitors would be willing to sell you a vital part of their business at a discount. Think of how disappointed and frustrated you might be when you pull up your business banking account and see that you don’t have quite enough money to take them up on the offer.
Think about Taxes and Insurance
Even owning a small business can really cost you when it comes to taxes and insurance. Instead of having to make special changes and adjustments, you can instead put money in your business savings account throughout the year and draw on that when your insurance premiums are due and when tax time rolls around.
Paying for Maintenance and Repairs
Sometimes the smallest fixes on your business property can cost the most. Your HVAC system might be on the fritz, or you might need to repair the railing on your stairs. It’s not unusual for business fixes to cost more than $10,000 a year, and it’s also not unusual for businesses to have to shut down until those repairs can be made. To keep from cutting into your profits and regular business operations, you’ll want to take care any repairs you need as soon as possible. By having a business savings account, you can always be sure that you’ve got the money on hand for emergencies and preventative maintenance.
Something else to think about with a business savings account is that it’s a great way to improve your business credit and shows San Diego banks that you have a way to pay back business loans if you ever have to apply for one.
Please contact Ella Gray at ella.l.gray@gmail.com with any questions that you may have.
