Make a list of your debts
The first step to successfully managing your debt as a business is to know exactly how much you owe to who. Make a list of your creditors, the amount you owe them, monthly bills and interest rates, and when payments are due. This will give you an excellent overview of your position so you are always aware of your debt situation.
Consolidate your debt
If possible, see if you can consolidate a number of your business debts into one payment. It may be that you can combine outstanding loans into one and secure a lower interest rate, saving you money overall. This will also make your debt easier to manage as you’ll only have one payment to focus on each month.
Make payments when they come in
Making payments when they come in can be tricky, especially if your business is struggling with money, but doing this will make managing your debt easier. Ensuring that payments are made on time will also reduce the risk of you missing one, helping you to avoid unwanted late fees. Try to document when each payment is required so that you know that they’re coming in advance. You could even set automatic reminders in your calendar for this.
Cut down your costs
If you’re finding it difficult to pay off your debts each month, it’s a good idea to take a look at your business and see how you can cut costs. This isn’t always an easy thing to do, but finding ways to save money can make a real difference in ensuring that your bills are paid each month. Reviewing your spending regularly is a good habit to get into as it will help you to stay on top of your outgoings.
If you require extra help or professional business advice, contact Hugh Davies today.