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Must-have Financial Products for New Businesses

If  you are just starting a business, you will need to take care of your financial stability and growth at an early stage. Most businesses struggle with liquidity and cash flow, and if they are not prepared for the unexpected events that they have to face, they fail. To make sure that you have all the products that you need in case of a cash flow crisis, check out the below guide.

Buildings Insurance

If you rent or have bought your business premises, you will need an insurance in case the worst happens. Just imagine that someone breaks in and all your computers with client files are gone, or even worse: a fire breaks out. Check with your commercial landlord to see whose responsibility it is to get the insurance in place, and make sure that all your business equipment is covered under the agreement.

Business Credit Cards

While paying cash and transferring money to suppliers should be your main form of settling bills, sometimes you are better off with a business credit card. For example, if you have to book a flight, you will get better rates, and even cash back. If you deal with suppliers that you don’t know, credit card companies can give you a better protection than banks. It is also great to deal with short term business cash emergencies.

Line of Credit Agreements

If you have a business account with your bank, and you have proof of your earnings, profits, and billables, you can apply for a line of credit agreement. This means that if your customers fail to pay on time, or you have an unexpected expense to cover, you can tap into this credit amount without having to pay extortionate penalties. Line of credit agreements give businesses the flexibility they need when establishing themselves on the market.

Invoice Finance

Another method of raising cash when you are waiting for customers to pay up is invoice finance. While they can be more expensive than other forms of credit, they can give you some time to get your finances and accounts back in order. When you take on an invoice finance, you can provide your billables as a security, and increase your business flexibility. If you have a problem with clearing a check, or an international payment takes time to arrive, maybe you need to finance a large project, this is a great option.

Public Liability Insurance

If you want to protect the reputation and financial stability of your business, you might consider taking out a public liability insurance. Get in touch with a Qdos Contractor to find out more about your options. The price of this product will depend on your business profile and activities.

New businesses often find themselves short of cash, and not being able to deal with financial emergencies can threaten the existence of the company. To prevent cash flow problems, and be prepared for the unexpected, you need to get all the above financial products, so you can have the flexibility your new business needs.