By Andy Masaki
The economic climate has still not been able to shoot back to normal. It is not only the common people, who have been facing problems with their finances, but the businesses too and mainly the small business entrepreneurs. The income and the receivables through the business transactions are still low, and most of the small businesses are in debt. So, how can you manage your business debts in such a situation? Is the small business debt consolidation, the only option for your small business debts ?
Tips on managing business debts
In order to start managing your business debts, it is important for you to:
- Rethink about your office space – If you want, you will have to rethink about the office space you have been using. If you can rethink about this, it may become easier for you to get back some more money in hand. You can then use that money to pay back the business debts.
- Increase the business exposure – It is important for you to increase the business exposure, so that you can get back more money. If you can earn more revenues, it may become easier for you manage the business debts. It may help you to pay down the business debts, without you having to face many problems.
- Review the debt interest rates – It is important for you to review the interest rates with regards to your business debts. If you can review the debts and the related interest rates, you may even be able to get the rates reduced, as per your affordability. In order to reduce the interest rate, you will be required to negotiate with the creditors. This program is known as debt consolidation.
- Negotiate with the suppliers – If you can negotiate with the suppliers, it can help you with getting more discounts. You can order the items you require, in bulk, in order to be able to reduce the cost of buying the items. If you can get the help of your good payment history or from the quotes with other suppliers while negotiating with regards to the flexible or the extended payment terms from the suppliers. You can also consider teaming up with other businesses and the owners in order to make the bulk purchases at really low prices.
- Reconsider your cash flow – Try to increase the cash flow, with regards to your small business. So, you will have to check out the accounts which are held by the customers, so that you can get back more money, in the long run. This is going to help you in freeing up some more money, which you can then use to pay down the business debts.
All of these together can help you managing the business debts easily enough, and also to pay down the business debts so that you need not file business bankruptcy.
Andy Masaki is a financial writer associated with the Oak View Law Group. He likes to keep updating himself regarding recent development in finance sector. Follow him at @andymaskai1