Here are our Chamber Finance Finder provider, Swoop’s top tips:
Refinance/restructure your debt. If you have variable-rate debt, consider refinancing it to a fixed-rate loan. This will lock in your interest rate and protect you from future increases. Some of your debt may be disproportionately expensive – this should be the focus of your immediate efforts. Talk to the expert team at Swoop about how you can achieve this.
Pay down your debt. The less debt you have, the less you’ll be affected by interest rate hikes. Make a plan to pay down your debt as quickly as possible, starting with the most expensive.
Increase your cash reserves. Having a healthy cash reserve will give you a cushion to weather any financial storms. Aim to have at least three months of operating expenses in your reserve. Our partner Swoop’s mantra is “cash is king”: they always make cash flow a priority, and have a number of options that can help you achieve this.
Review your budget. Make sure your budget is as lean as possible. This will help you reduce your costs and make your business more resilient to changes in the economy. You should know you’re getting value for the money you spend.
Be prepared to make changes. If interest rates rise, you may need to make some changes to your business. This could include raising prices, cutting costs, or reducing your workforce.
