3 Quick Ways You Can Conserve Cash During a Financial Crisis

By Gene Marks & Kelly Spors
The Hartford Small Biz Ahead
Originally Published: December 14, 2020 | Updated: September 18, 2023

How Can a Business Save Money Quickly?

1. Talk to Your Bank

My company uses a large, multi-national bank. Like many other banks, big and small, mine has been very sympathetic to the plight of its business owners when they encounter unexpected challenges. I have a close relationship with my banker, so we’re able to discuss ways my business can move beyond any crisis in months, not years, and be prepared for when things bounce back. It’s important to make sure your bank commits to their lines of credit and that they can help if you need even more. You should discuss potential deferrals of payments or extensions of terms. Assuming you have a good relationship with your banker, you’ll likely find that the response will be encouraging because it’s in your bank’s best interest to succeed. As I write this, our credit and financial system is sound. And unlike the 2009 recession, capital is still readily available. It’s important to evaluate all financing and credit resources, while keeping your options open and doing your best to not spend.

Moreover, there are lower-interest loans available from the Small Business Administration that are specifically for small businesses. These loans are federally guaranteed so many businesses that lack credit history or other requirements needed for a traditional bank loan can still get financing. These loans can provide needed funds for working capital, property and equipment purchases and are available both for very small and established businesses. Some are offered through banks while others can be found through nonprofit organizations and community lenders. Depending on the nature of the loan you may be able to borrow up to $5 million with varying re-payment terms. Having this financing available would be instrumental in helping you navigate any potential cash flow crisis…[MORE]

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To read the entire article by Gene Marks & Kelly Spors at The Hartford Small Biz Ahead website, visit: 3 Quick Ways You Can Conserve Cash During a Financial Crisis