The first thing to remember about borrowing money is that you will need to be able to pay it back, so make sure that any loans that you take out are both affordable and necessary. There is no point in saddling your business with additional debt unless you have specific goals from the loan, and know exactly what you are planning to do.



If your business is in a growth phase, the first place you should look for cash is in your own company. By examining areas where you can save money within your existing operations, you may find that you are able to free up a significant amount of cash for increased day to day expenses.

Simply by switching to a free business current account you may well be able to save a considerable amount of money each month on the cost of depositing cheques and other day to day charges that your bank applies. Depending on the way you use your account, finding one that charges you less each month could have a major impact on the amount that it costs you to run your account.

One area where many businesses can find additional funds is to rationalise the way in which they chase payments. If your customers only pay you once every 3 months, then you are missing out on the interest that you could be earning on the money if it was in a business deposit account. Also, many larger companies will wait until they receive reminders about paying you for the goods or services that you supply, which could really impact on your cash flow situation.

Managing your incoming funds can only go so far to save you money, but you can also go further and make more use of your surplus funds. A special business savings account will typically pay you a much higher rate of interest on balances than a standard account, and by investing money on a regular basis you will soon build up enough cash to give you the ability to fund expansion or cover your expenses during a quiet period.

Whatever you do with your business money, it is always important to regularly review your original business plan to ensure your business is moving in the right direction. Expansion at the right time can give you greater opportunities to increase revenue, but remember that it will also result in higher costs, so make sure that the market is able to support your endeavours.

By keeping on top of your costs, and planning any expansion to match with what is available from within your own funds, you will reduce the likelihood that you need to rely on securing your business finance from an external source such as a bank which will save you a great deal of money in the long run.