Financiera FINCA is characterized by providing a personalized service where we stand out for our Warmth, Trust and Responsible Banking. As part of fulfilling our Mission and Attributes, it is very important for us to share with you some financial advice so you can take the necessary precautions and always have liquidity in your company.
Always take into consideration:
- When you have working capital in your business, make sure that the money you choose to invest will generate revenue and work for you, not against you. Otherwise, your investment will result in a bad business decision & you will need to depend on a financial institution to bail you out.
- Keep track of all daily spending in a notebook or log. By not doing so, it will be very difficult to recall all expenses that have been made during the month and will cut down on your resources.
- Stick to a previously planned budget to avoid impulsive spending at the time of making a purchase. Avoid spending more than what is budgeted because it can lead to the draining of your business’ resources.
- Before applying for a loan, thoroughly analyze the conditions. You will inevitably have to pay an interest rate with an agreed upon repayment schedule to the regulated financial institution that facilitates the capital. Failure to make timely payments will result in a report to the Central Credit Bureau of Risk and in turn, may cause you to have a compromised credit score.
- Have a spending plan. Preparing ahead for the majority of purchases or spending for your business will save time and give you more control of your finances. If you are an impulsive buyer make sure to first prioritize the needs of your business.
- Maintain a reserve of working capital in a savings account to be able to handle anything unexpected that may arise in your business. This also applies to your personal life to anticipate any unforeseen health or family emergencies. The lack of savings may result in an undesired loan.
- Incentivize your employees and team members to adopt your same habits of controlled spending inside the company ensuring consistent liquidity. If you have staff who don´t share the same mission and vision of your company, it is likely that they do not share the same practices of controlled spending. This may result in unnecessary costs within your business.
- Paying for an asset is not a cost, it is better to consider it as an investment in the medium and long term. If as a business owner, you do not prioritize investing in assets, it will be difficult to offer value added services and become competitive in your market.
- If you have enough savings to pay for consumer debt such as credit cards and car loans with high interest rates, do it. (Make sure to pay the loans with the highest interest rates first). Do not allow loans to rob you of sleep and start creating your estate in order to have economic stability and a decent retirement. Remember, realizing your dreams depends on how much you save.
- Internally socialize your monthly budget to promote conscientious spending within the company. Efficient processes are a way to improve the performance of your company, thus making it easier to raise awareness about cutting costs.