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Commercial Line of Credit: Managing Your Business Year-round

Mar 18, 2020 - Posted by: Rocky Mountain Credit Union

 

Right now, we are facing a particular lull in business, due to COVID-19. But for many Montana businesses, we are heading into "shoulder season," when the tourism tends to trend down, and the locals take a breath before summer travel kicks in. When you're at the helm of a small business with irregular cash flow, especially with the unknowns in our current experience, making ends meet can be an added stress.

Plenty of industries are not immune to these lulls as a regular part of the business. The wedding industry, rental agencies, outfitters, and hospitality businesses all work around seasonal slowness (just to name a few). Currently, a wider variety of companies need a little extra to manage the slowness or inconsistency.

RMCU and its business services team are here to help. You don't have to fear a sinking ship just because of seasonal or situational cash flow fluctuations. Here are some of the ways a commercial line of credit can help your business out, whether times are lean or prosperous. 

 

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Dealing With the Lull

Adding in new services or focusing on a specific need is a valuable tactic to help promote the cashflow through a downturn. But the reality is, coming off a busy season, you've been putting in endless days to get through it. As a small-business owner, you do what it takes; and now you're maxing out your hours to sustain yourself through the lull. 

While logging more hours is probably the last thing you want to do. A commercial line of credit can help sustain the day-to-day of the business, while you take that much-needed break to refocus for the next sprint. Whether it's time to yourself, the ability to focus on your family, or a planning getaway to process your next steps, a little time away might be just what you need to go forward.

Your energy is what drives your business, so partnering with business services representatives who understands the needs of today, can be a valuable aid to maintain your mental health and your energy reserves. Your business can't flourish when overwhelming circumstances abound. We can help you manage the cash flow, while you tackle details of the lull. 

 

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Cash Flow Gaps

When you're working contract to contract, or as a field services company, there can be a lot of lag time between when you invoice and when the payment arrives. As you're starting on the next project, you want to be sure you have the funds to give it your all, not waste time while you wait for a check to clear. 

A commercial line of credit can give you that anytime support you need while making sure you can afford to keep working. You can purchase materials for the next project, stay current on payroll, and then pay it back when the funds that are sitting in limbo, clear. 

 

Capitalizing on Opportunity

Being able to make the most out of circumstances is a consistent need in the ebb and flow of business. When conditions are lean, there are often opportunities that avail themselves to us, and we need a partner or a little extra in the bank to bring those ideas to fruition. Whether it's the finances to make it happen or the confidence to know you have access to the capital you need to go big, our Business Services team is a partnering resource to help you turn the potential into a win for your business.

 

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Managing the Year-end

If your business slows as the end of the year nears, a commercial line of credit can help you ease the strain of stretching across the slow season, assisting with vital expenses like payroll. If you want to keep quality staff who can help your business grow, you need to make sure checks are always cut and delivered on time. 

When you apply for a commercial line of credit, you're giving yourself peace of mind where your employees are concerned. You know the pressures of people who rely on you to feed their families; take some of that stress off your plate. We know that trying to find the best ways to help your company prosper is an essential part of being a business owner. 

A commercial line of credit with RMCU is the perfect place to find a resource to help you succeed. Click here to find out more about your options for boosting business, or click below to contact Alan or Connie in our Business Services department. Membership has its privileges. Find out what we can do for you today!

 

For more money-saving tips, check out some of our other blogs here

 

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