Relocating your business can be an expensive venture. Whether you are moving across town or to another state, you need to have the cash to complete the move. Aside from the actual cost of moving, there are also ancillary costs. During the move, you may lose several business days setting up shop in your new location. There may also be employees who will not be joining the move so it will add up to the relocation costs.
As you may not have enough funds to shoulder the expenses, you may be looking for alternative sources of capital for your relocation.
Personal loans are usually unsecured debt. You don’t have to worry about your car getting repossessed or your home getting foreclosed if you default on the loan. The downside is that you will have to pay a higher interest rate than with secured alternatives. But if you have an excellent credit record, you may be able to get a lower rate.
Personal loans are usually repaid over a period of 1 to 7 years. You may opt to get a loan with shorter repayment terms to reduce the interests you will pay on your relocation expenses. A personal loan may make sense if you have a brighter financial future after the relocation. If you will have a higher salary, for example, that could offset the costs of your personal loan. However, if there is no salary increase or decreased cost of living, then personal loans may not be the best option for you.
Employer-based relocation assistance
If your relocation is related to your job, you may be able to qualify for employer-based relocation assistance. You will have to negotiate the number of funds as well as your compensation package with your new company or current employer.
Some employers will require you to continue working at the company for a set period of time after the relocation. Otherwise, you will have to pay the relocation funds in partial or full.
Saving up for your relocation costs is often the best option since you won’t have to pay interest rates like you would if you take a loan. Make an estimate of how much it will cost to relocate your family. Include all your monthly bills and other savings goals.
Some credit cards offer low-interest rates compared to personal loans if you have excellent credit. You can also apply for a credit card with a promotional 0% annual percentage rate (APR) which is valid for 18 months. Just make sure to settle the balance in full before the expiration of the promotional 0% APR or you could end up paying the usual higher interest rates for credit cards.
How To Save Money For Your Relocation
As mentioned, business relocation can be costly. The good news is that you can make it less expensive. Here are 5 money-saving tips to reduce the costs of relocation.
Move less stuff
It can be hard to let go of the stuff you have invested in for so many years. But if you really want to make moving really affordable, then you need to let go of some stuff. Go through your belongings and check for items that you haven’t used in a long time or are redundant. You can set it aside and donate it. You can also sell them and add the proceeds to your moving costs.
Don’t pay for moving boxes
Another way to save money for business relocation is to not buy moving boxes. These boxes are quite expensive and can add up to the costs especially if you have a lot of stuff to move. Instead of buying, you can use old shipping boxes. Maybe you can head over to Walmart or Target and ask for old boxes that you can use. Chances are, they wouldn’t be recycled anyway.
Save on packing supplies
Just like moving boxes, the costs of packing supplies can add up to your expenses. You can use items that are readily available. The Amazon box that you will use as a moving box likely came with a bubble wrap. You can use that as well as the newspaper that you buy and read every day. You can use these things instead of the packing supplies.
Shop around for movers
Most likely you will be paying for a moving company to ship your office supplies and equipment to your new business location. It will certainly make up a huge chunk of your relocation expenses. It is unlikely that you can bring down their costs but you can research for the best deal possible. Search for a few movers and compare their prices.
Rent a truck
Another way you can save up on the cost of business relocation is to rent a truck. It could be a lot of work for you loading up all your stuff to the truck but it can considerably reduce your costs by thousands of dollars.