Credit cards lines, small business loans, debt consolidations, all of these are quite common nowadays because almost every small business could utilize funds for their business in some way.
Now, the fact of the matter is that debt is an extreme part of every business, and luckily there are a lot of debt consolidation service providers now who can lend enough funds to pay off outstanding balances owed, and put you under “one umbrella”.
You also may not be in debt quite yet, but have not been paying your credit card bills on time and are falling behind on finances due to overdue invoices and are looking for some working capital to sustain it.
Now, if you are a small business owner who falls into one of the categories above and wants to save himself from the risk of falling into the debt trap- then here are a few things you need to consider;
Map Out All Your Debt
This is the time to bust out your handy dandy calculator, pull out the bills you have piling on, and start calculating your monthly expenses versus your monthly income. Once you have an idea of what your outstanding balances are , you will have more of an idea of how to manage your debt.
Are you overpaying someone? Behind on a few payments? This is the time to map it all out so you have a better understanding of how to attack your finances.
If your spending and cash flow are predictable then it could be easy for you to calculate the money to pay back on a monthly basis, and consider utilizing a debt consolidation service.
Find a Way to Limit Your Payments
Have you already taken out business loans for some capital and now its just building up? Are you using credit cards with high interest rates?
Take a look at your monthly statements and calculate the average interest amongst those bills. Some companies provide a discount for paying off debt early, and again this would be a good time to consider reverse debt consolidation.
In most cases, lenders will look at the health of your business and provide you a lump sum to pay off some overlying debt. This should provide you some “room to breath” while being able to have your debt under one roof.
Consider Secondary Sources to the Bank
Sometimes when starting a business, debt piles up and as a business owner you may need to delay some payments therefore creating a credit drop on your personal credit score. When this happens, you may reach out to a bank and get denied for working capital.
Do not hesitate to reach out to a secondary option such as Bizfly Funding. They will provide you with various types of funding options and great terms for payback. These are just a few ways to survive business debt.
By Mapping out your debt, Limiting your monthly payments and considering receiving a loan for your small business, you should be able to tackle your business debt in no time.
