Running your own business can be a dream come true for a driven entrepreneur, but that doesn’t mean that you’ll never have a challenge. Money management in business is a number one priority, as the dollar can make or break any organization.
One way you can stay protected from financial risks is by insuring your business. That way, in the event of an incident (financial losses, accidents, lawsuits, etc.) you will be able to provide the business with the monetary help it needs. As a business owner, you can check out general business insurance policies like business liability, income protection, and more. If you are looking for something more specific and suited to your niche, you can take a look at specialty insurance as well. With proper research, you can find many options including insurance for gun ranges, tattoo parlors, hair salons, or whichever business you need it for.
If you do find your business in a financial pickle, it’s helpful to have a backup plan. Finding money in a hurry isn’t impossible. Check out a few ways you can dig up some dollars when your business encounters financial trouble.
Consider cashing in on your life insurance policy
Fairly recently, it has become an option for life insurance policyholders to cash in on their savings, and utilize the funds they’ve accrued while they’re still alive. What better reason to cash in on your life insurance policy than to save your way of living?
If you’ve worked hard for years to stash away a nest egg, you can tap into those funds. However, there are a few important things to consider before you sell your life insurance policy for some fast cash.
Tap into your retirement savings
The funds you have accumulated over the years you spent working for someone else could be a possible source of funding in a pinch. Your 401(k) could give you just the break you need to get your business operation back in the black.
The tax laws pertaining to retirement savings have been augmented in such a way that you can tap into your funds without suffering a formerly imminent penalty.
Consider utilizing a HELOC loan
If you own your home, then you own a secret stash of money. Though you shouldn’t take this option lightly, you can consider taking out a HELOC (home equity line of credit) loan. Your home has equity, especially if you have updated anything since you’ve purchased the property.
This means that you have a potential check in the mail, but you need to be wise about making such a potentially risky decision. If you lose the money in the business and can’t pay the payments on your borrowed cash, then you could risk losing your home.
Try to get ahold of a microloan
Microloans are small business loans that most commercially owned banks don’t really bother with on a regular occasion. You will need to do some research, and find a microlender. Microlenders tend to be non-profit organizations, and they work a little differently than a typical bank.
Use a credit card to bridge the gap
You could make your financial crisis a simple situation by using your personal credit card to come up with a little money. The problem is that your funds will be limited, and your personal financial security is then put at risk.