Empowering Small Businesses: Safeguarding Capital & Funding Growth in 2024

by Mohammed Ahmad

In the face of a nationwide credit squeeze that is hindering the growth of small businesses, the concerns echoed by entrepreneurs are loud and clear. Many small business owners are navigating uncertainty as we get further into 2024 and may be wondering how to optimize their financial strategies to ensure a lucrative year, not a step back.

While there are many strategies to maintain a healthy bottom line, your financial institution of choice is likely the first place you want to start your exploration as there are services available to you that can maximize gains in a simple manner. At Arizona Financial, we have been working with our small business partners to educate them about high-yield savings accounts as means to support the sustainability and growth of their businesses in these uncertain and potentially turbulent financial times.

Here’s how high-yield savings accounts and community-focused approach can make a difference:

Accessible Capital

To support growth, or to maintain a healthy operating budget, accessible capital is always top of mind for small business owners.

High-yield savings accounts typically provide higher interest rates compared to regular savings accounts or business checking accounts. The interest earned on your savings can contribute significantly to your capital over time. By setting aside a portion of your profits in a high-yield savings account, you can accumulate funds that will enable you to seize growth opportunities when they arise.


With today’s higher loan rates and ongoing uncertainty around a possible recession, small business owners may think twice about taking on additional debt.

By maintaining a separate high-yield savings account dedicated to operational expenses, you can ensure your business has the funds necessary to cover your daily running costs. This segregation helps avoid the temptation of dipping into these funds for other purposes, keeping your business’s financial health intact. Furthermore, the higher deposit rates provided by these accounts can help your money work for you.

Your operational expenses are often predictable, so you can calculate the required monthly contributions to cover them. Any excess funds can continue to grow in your high-yield savings account, creating a financial buffer for future needs.

Emergency Funding

As always, preparing for unforeseen emergencies is crucial. High-yield savings accounts play a pivotal role in building and maintaining an emergency fund that can cover several months’ worth of expenses. This not only provides financial security but also peace of mind.

Knowing you have readily available cash for unexpected expenses or market downturns allows for flexibility in adapting to changing circumstances without resorting to debt or compromising the future of your company.

Optimizing your small business’s financial strategy in a tough economy requires thoughtful planning and the right financial partner. And while high-yield savings accounts are just one tactic, working with your local bank or credit union to explore other options to maximize your finances in 2024 is recommended.

Start building your financial foundation today and watch your business not only survive but thrive in the face of economic uncertainty.

Mohammed Ahmad is the AVP of Business Banking at Arizona Financial Credit Union.

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