- 1). Control your company and personal expenses. There are various aspects of operating a business that can't be controlled, but there are expenses that are discretionary --- as long as you're carrying bank financing, those expenses should be kept to a minimum. Whatever difficulties a business is facing may be exacerbated by business owners running up personal debt. Just because credit is available at low rates doesn't mean it's OK to buy a 10-gallon hat and a herd of cattle: Control expenses and leave enough wiggle room in the company budget to repay the loan even if the price of fuel goes up or another area of the economy takes a turn for the worse.
- 2). Make additional principal payments for an early loan payoff. As long as there's no early repayment penalty attached to the loan agreement, you may save on interest by repaying the loan ahead of time. Although lenders in the Lone Star State stand to lose interest when companies repay loans early, they can always loan the money you've repaid to another customer. After your company's loan is repaid, the bank sees you as a viable candidate for another loan because you've established a solid reputation for carrying bank financing and meeting your obligations.
- 3). Communicate with the bank if you're unable to make a payment on time. The worst thing a business owner who's carrying bank financing in Texas can do is ignore telephone calls and fail to respond if a bank starts calling for information concerning a missed payment. If you thought the Alamo was ugly, you haven't seen anything until you've rubbed a Texas bank the wrong way. You may initially receive strongly worded letters from the bank's attorneys, but it will likely result in a fierce Texas-style courtroom battle if you fail to cooperate.
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