How to Reduce the Fixed Expenses in My Business

 

 

07 Nov Ways to reduce fixed costs in your business

 

 

Businesses in Mexico fail when their expenses exceed monthly income. To avoid this situation you can take actions to reduce the fixed costs and save money in your business.

Fixed expenses are those that do not vary much with time. That is, they are expenses that you will always have to pay month after month, such as rent, salaries and electricity. It is important that you have identified them, so that you are aware of the money that you must forcefully set aside to pay for them.

By having them identified you can implement actions to decrease them. In Konfío we share some measures you can take to reduce the fixed costs of your business or SME:

Hire an expert to help you bring finance to your business

Hire an expert to help you bring finance to your business

 

It can be very helpful for your business to have the help of someone who can advise you and help you reduce costs. It can also help you structure the financial plan for your SME.

 

Check the rent

Check the rent

Try to negotiate your rental agreement and check whether a long or short-term plan is right for you. If you are thinking about expanding, you can take advantage to look for other workspaces that are more accessible.

 

Constantly analyze your options

Constantly analyze your options

Always check the prices in the market, you may be buying your products or raw material at a higher cost. You may find cheaper options in the market that are useful to you. If you apply the power of negotiation with your suppliers you can get to acquire affordable prices. This will undoubtedly benefit your business.

Save on services

Save on services

It will be very useful if you can reduce the consumption of electricity, gas, electricity, etc. You will notice the difference at the end of the month when you have to pay for services. Find the commitment of employees to help you, for example, turning off the light when it is not necessary.

If you reduce your fixed expenses, at the end of the month you will have saved more money and the performance of your business will improve. You can reduce them gradually, if you decide to save all possible expenses to boost your business.

Is Lending Over The Internet Safe? – Credit or Debit

The bills need to be paid and you do not have enough money. A loan may seem like the only option to get out of the crisis. In the internet world, loan offers still populate throughout the network, ensuring features without credit check, easy money, attractive interest loans. Better to be careful: getting a loan over the internet is a big risk.

I want to make loan through the internet: the safe forms

Consolidated, trusted banks and financial institutions offer loans and financing through the internet. To make the application to this type of loan or financing, you have to access the official website of the financial institution, make sure the site starts with “https” and appears the symbol of a lock in the address bar of the browser, showing that the browser connection is secure and encrypted, and after making your application for the loan, go to a physical agency of the bank or financial institution to confirm your loan or financing.

Another safe way is by using your bank’s internet banking. Most of them offer pre-approved personal credit lines and multi-purpose financing with funds that fall directly into your bank account and without the need to go to the bank to sign a contract, except in the case of real estate and vehicle financing .

These are the only two situations where online loan is safe. In the first option, you will have to go to the bank or financial institution anyway, which makes it a better (and safer) option to just look at the loan conditions on the website and go to the bank to close the deal. In the second, more practical, and that involves internet banking, you have already been to the bank and have your limits preapproved. You may have to visit again just to update your registration information, but it is not always necessary.

Any other way to get loan over the internet is unsafe, and in the vast majority of times it is a scam. Let’s talk about them.

 

An internet loan is full of risks that a face loan does not have. Be very careful. (Photo: makemoneyonlinetoday.org)

 

Secure and fast internet loan: blow to the eye!

Secure and fast internet loan: blow to the eye!

 

Getting a loan or financing MUST require a minimum of paperwork. This procedure is NOT to be easy and quick. Because? Let us understand.

When giving money to someone, a bank or financial institution takes on costs and risks. Costs may involve paying employees, renting machines and computers, buildings, websites, etc. Already the risks involve the economic situation of the country, the financial condition of the clients, the possibility of that customer becoming defaulter, etc. Both costs and risks are passed on to customers in the form of interest on the given loan. Do you understand this far? Great.

To manage risk and ensure a minimum of security, especially that the customer will be able to pay the installments of the financing or loan, the bank or financial institution will spend a fine comb on some financial information such as proof of income, credit history , verify that the customer’s name is cleaned in SERASA and SPC, etc. After this verification, the loan can then be passed on to a client. This usually takes between 7 and 15 business days to be done accurately and safely by reputed financial institutions.

A company that makes few demands on a customer has two options: either it will charge very high interest to offset the risks or it will apply some kind of blow to the customer. There is no other option. There is nowhere in the world a company that offers easy loans without high interest rates. If it is a payroll loan, that is fine, but this is already another type of loan and you should NEVER get a paycheck loan online, unless it is through your bank’s internet banking.

Protect yourself from internet lending

Online loan offerings, especially for retirees and payroll loans, have become an increasingly common type of scam. Some red signals make the blow even clearer.

If you are asked to pay money to get the loan, it is certainly a scam.

If you are asked to send money or put money on a prepaid card before you can get a loan, it is a scam.

Online loan scammers will ask for data from your bank account. Never give any personal information or your bank accounts to any people online. Just because an online institution or bank seems legitimate does not mean it is.

You can negotiate the terms of a loan online, without giving personal information, and then visit a physical unit of the institution to close the deal.

 

Beware of loan scams!

Never despair of money. It is precisely the desperation that will make you make mistakes and that will lead you to fall in blows, and that will take you to more and more debts. Leave your bank ready for a pre-approved credit line for these emergencies, and you reduce the risks considerably, as well as reduce the interest you will have to pay. This is part of any financial planning, and should be an important lesson to carry throughout your life.

Have you taken an online loan? How was it? Did you have any problem?