The start of a new business year is more than a calendar milestone—it's a chance to reset intentions, tighten financial discipline, and make sure you're ready for whatever opportunities or challenges may surface. The most successful businesses don't wait for surprises. They take a proactive approach, using January and February to position themselves for stability, flexibility, and growth.
Here are five smart financial moves that can help your business build momentum from day one.
1. Review Your Credit and Renewal Needs
A strong year starts with strong credit footing. Too often, businesses wait until they need capital before examining their existing credit structure—leading to rushed decisions or missed opportunities.
A proactive annual line review ensures you know:
- Whether your current credit limits still match your operating needs
- If your line is scheduled to renew this year
- Whether updated financials or collateral valuations are required
- If rising costs or expanding inventories warrant an increase
A brief review today can prevent stress later. It also signals to the bank that your business is actively managing its financial health—something lenders always appreciate.
2. Refresh Your Financial Goals and Budget
Last year's assumptions rarely fit this year's realities. Interest rates move, labor costs adjust, and supply chain dynamics keep shifting. Reconfirming your goals and budget early ensures your spending aligns with the environment you're actually operating in—not the one you planned for months ago.
A few focus points:
- Revisit revenue targets with updated market conditions
- Re-price cost of goods and labor assumptions
- Re-evaluate debt service under today's rates
- Confirm you have enough margin for growth initiatives
Business owners who budget with current data—not outdated expectations—tend to make better, more confident decisions all year long.
3. Strengthen Cash Flow Management
Cash flow is the lifeblood of any business, and tightening your processes early is one of the most valuable steps you can take.
Modern treasury tools can help you move from reactive cash management to strategic control:
- ACH origination to streamline payroll, vendor payments, and receivables
- Remote deposit capture to speed access to funds
- Online and mobile business banking to give owners real-time insight into cash positioning
- Sweep accounts to automatically move excess balances to interest-bearing accounts
Small adjustments in how money enters and exits the business often create meaningful efficiency—and peace of mind.
4. Plan for Growth Capital Needs
Whether your business is upgrading equipment, expanding a facility, or preparing to hire, planning ahead ensures your financing supports—not slows—your momentum.
A conversation with your banker can help clarify the right path, including:
- Equipment financing structured around useful life and depreciation
- Owner-occupied real estate financing for long-term stability
- Working capital solutions for projected growth cycles
Your banker can help translate your plans into the right capital structure so opportunities can be pursued confidently and responsibly.
5. Schedule a Financial Review with Your Banker
The beginning of the year is the ideal time to reconnect. A 30-minute review can surface opportunities, uncover risks, and ensure your banking structure supports your goals—not the other way around.
Your banker can help you:
- Benchmark financial performance
- Assess credit strength
- Identify liquidity gaps
- Explore new technologies or cash-flow tools
- Align financing with your long-term vision
Reach out now, before the busy season starts. Starting the conversation early means you'll be ready to move quickly when decisions need to be made.
Line of Credit Renewal Checklist
What to review before your annual renewal — and how to prepare for a smooth, stress-free process.
A line of credit works best when it's reviewed proactively. Use this checklist to make sure your business is prepared before renewal time.
✔ 1. Financial Documents to Gather
Most renewals require updated financial information to confirm your business's current health.
Have ready:
- Most recent year-end business financial statements (Balance Sheet & Income Statement)
- Interim financial statements (year-to-date)
- Prior year tax return (if filed)
- Accounts receivable aging report
- Accounts payable aging report
- Current inventory list or valuation
- Personal financial statement (if required for guarantors)
Tip: Prepare digital copies for faster processing.
✔ 2. Review Your Line Usage
Understanding how you've used your line helps determine whether your current setup still fits your needs.
Review:
- Average monthly balance
- Highest outstanding balance during the year
- Frequency of draws and repayments
- Purpose of funds used (inventory, payroll, seasonal demand, etc.)
- Whether the line sits near max for long periods (a sign term financing may be more appropriate)
Ask yourself: Does your current limit match your real-world cash cycle?
✔ 3. Evaluate Working Capital Needs for the Coming Year
Before renewing, look ahead at what might change.
Consider:
- Expected changes in sales volume
- Increases in labor, inventory, or purchasing costs
- New contracts or customers that will require more upfront cash
- Seasonal patterns
- Planned equipment or vehicle purchases
- Any major business changes (location move, ownership adjustment, expansion)
Your banker will use this to help size the line correctly.
✔ 4. Update Your Collateral Information
Depending on how your line is structured, your bank may need updated collateral details.
Prepare:
- Updated inventory levels
- Updated receivables aging and any write-offs
- List of major equipment if applicable
Tip: If receivables are a key collateral source, clean up past due accounts before renewal.
✔ 5. Clarify Any Adjustments You Might Need
Renewal is the best time to fine-tune your credit structure.
Consider discussing:
- Increasing or decreasing the credit limit
- Adjusting terms to reflect your cash cycle
- Moving term-debt items off the line and into a term loan
- Adding treasury services to support cash flow
- Setting up automatic payments or sweeps
A well-tuned line of credit becomes a smooth operating tool instead of a source of stress.
✔ 6. Schedule Your Renewal Meeting Early
Avoid the rush of tax season and spring lending volume.
Before the meeting, ask yourself:
- What's working well with your line?
- What's become a pain point?
- What might change in the next 12–18 months?
Your banker can help you think through the right structure with the right information.
Want Help Preparing?
Our bankers review hundreds of lines of credit every year. We're happy to walk through your documents, discuss your goals, and help you tune your credit tools for the year ahead.
Contact your local banker to get started.