When was the last time you considered your business’s resilience?
Equipment costs can add up to a hefty expense line on any balance sheet. What many business owners don’t realize, however, is how much these assets can impact overall profitability. Taking a strategic approach to equipment acquisition and maintenance can be a game-changer — but what does that look like? Having a benchmark of your company’s general financial resilience is a good place to start.
Presenting: Meridian Financial Resilience Score for Business
Meridian Credit Union, our parent organization, offers a free, digital financial health tool. The survey and resulting report help business professionals across a variety of industries understand the key drivers of their organization’s financial well-being and what actions they can take to improve it.
In less than five minutes, you can complete the Financial Resilience Score for Business survey and receive an overall “financial resilience” score and get a report that includes recommendations and resources for next steps, all backed by industry-leading data.
What determines a financial resilience score?
The financial resilience score is calculated using three key factors: financial management, access to capital, and planning. By identifying the strengths and weaknesses of these three areas, you can create a plan of action to improve the financial well-being of your business.
Financial management
This section of the survey assesses how you manage your day-to-day expenses and capital resource management. For example, using equipment financing to pay for equipment like agriculture assets or fleet vehicles could prove an excellent way to preserve cash and lines of credit for your other operating expenses.
Access to capital
Every business needs to gauge their access to all available capital resources. This survey estimates credit health depending on your organization’s ability to pay off loans and other professional obligations. For example, financing agriculture and transportation assets to free up capital for emergency expenses and other business initiatives would fall in this category because it offers a better return on investment than ownership of depreciating assets.
Planning
The planning score highlights a business's future financial well-being, which is particularly useful for asset-intensive business models. For example, a well-planned equipment strategy considers possible risks like hailstorms, market volatility, and the profit potential of certain assets. Planning strategies could also include opting for fixed payments (monthly or seasonal) because it helps you with tasks like budgeting and forecasting, improving overall cash flow and capital management.
Take the survey to find your benchmark
Take the survey online today – and as often as you like, all for free. At OneCap, we’re committed to making sure our business partners have everything they need to make sound financial decisions.
At the end of the survey, you can view the complete results online and access resources and tips relevant to your answers. You also have the option to receive a comprehensive breakdown of data, financial wellness, and next steps via email, or talk to a Meridian Business Advisor for more strategic next steps.