Are you struggling to pay off your business debts? Are creditors constantly calling and harassing you? If so, you’re not alone. A large number of businesses go through tough times when it comes to debt. However, there are ways to clear your debts and get back on your feet.
This guide, provided by A. Fisher & Associates through their site Debt Relief Canada, will breakdown all the information you need to get started in beating your business debts. Alongside providing everyday budgeting tips, A. Fisher & Associates are experts in everything from consumer proposals and the latest debt solutions to credit card debt and more
Check out their Ultimate Guide to start clearing your business debts now!
- Evaluate your business debt levels
The first step to business debt relief is evaluating your current business debt situation. This will give you a clear picture of where your business stands, and what debts need to be addressed first. To get started, gather financial statements and tax returns from the past few years. Then, create a list of all business debts, including information such as loan amounts, interest rates and minimum monthly repayments.
- Create a business debt repayment plan
Once you’ve evaluated your business debt situation, it’s time to create a repayment plan. This plan should include a timeline for repaying each debt, as well as a budget for making monthly payments. To create a business debt repayment plan you should start by listing all business debts in order of priority and then determine how much extra you can afford to pay each month.
- negotiate with creditors
If your business is struggling to make monthly debt payments, you may be able to negotiate with creditors for more favorable terms. When negotiating with creditors, be sure to have a clear repayment plan in mind. Creditors are more likely to be flexible if they know you’re committed to repaying your debts.
- Consolidate business debt
Debt consolidation is another option for business owners struggling to make monthly debt payments. By consolidating business debt, you can reduce your interest rates and monthly payments. This can free up cash flow so you can focus on other aspects of your business.
- Use business debt to your advantage
If used correctly, business debt can actually be a tool to help you grow your business. To use business debt to your advantage, consider taking out a business loan and using the funds to invest in growth opportunities. This could include expanding your product line, opening a new location or hiring additional staff.
- Seek professional help
If you’re struggling to get business debt under control, seek professional help. A qualified accountant or business coach can assess your situation and provide expert guidance on how to move forward.
- Get creative with business debt repayment
There are a number of creative ways to repay business debt. One option is to negotiate with creditors for a lower interest rate. Another is to sell assets that are no longer essential to your business. And, if all else fails, you may be able to negotiate a payment plan with your creditors.
- Find new sources of revenue
If your business is struggling to make debt payments, it may be time to find new sources of revenue. To do this, you’ll need to get creative and think outside the box. One option is to offer consulting services or teaching courses related to your business. Another is to start an online business or launch a new product line.
- Cut business expenses
Reducing business expenses is another way to free up cash flow so you can make debt payments. To start, take a close look at your business spending and see where you can cut back. You may be surprised how much you can save by making small changes to your business budget.
- Prioritize high interest business debt
If you have business debt with high interest rates, it’s important to prioritize these debts. The reason is that the more interest you’re paying, the less money you have available to repay your principal balance. As a result, it can take longer to pay off your business debt. To make things easier, consider transferring high interest business debt to a business credit card with a lower interest rate.
With these 10 debt reduction strategies, you can get business debt under control and start moving your business forward. Just remember to create a repayment plan, reduce expenses and find new sources of revenue. With a little bit of effort, you can clear your business debts and focus on growing your business.
Chris Mcdonald has been the lead news writer at complete connection. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. Chris is also an author of tech blog Area19delegate. He likes spending his time with family, studying martial arts and plucking fat bass guitar strings.