To protect your personal assets and credit
When your company needs money to make payroll or cover other dayto-day expenses, do you put your personal money into the business? If you have the funds or credit available, it's easy to do.
However, using your personal assets as an emergency fund is risky. If the business folds, you lose those assets. If you took out a personal loan or used a personal credit card to cover business expenses, it can also damage your credit -- even if you are able to eventually pay off the debt.
To take advantage of new opportunities
A business emergency fund should always be on hand for true emergencies, but having savings available can also open positive doors for your company when time-sensitive opportunities arise.
Having cash available can allow you to expand your business, purchase equipment from a competitor that is going out of business, strategically launch a new product, or purchase extra inventory at bargain prices. The extra cash will give you the flexibility to move quickly when you see potential.
Don't let a lack of cash create problems for your business or cause you to miss out on positive opportunities. Whether you're looking for help with working capital management or better information for cash-flow projections, Synovus can help.