No one wants to find themselves in debt, especially so if you are running a business of your own. Seeing red can often be a highly stressful period for business owners, as failing to pay a debt back can often lead to a ruined credit reputation or even bankruptcy in the long run.
Having your business in debt can truly be a daunting experience, but fret not as it is not the end of the world. In this article, we strive to show you that there are many positive steps you can take to get your business finances back on track.
In other words, debt doesn’t have to spell the end for your business, so read on to find out more.
First Off, Assess Your Finances
Even if you may already know that you are in debt, assessing your finances and
scrutinizing it is step one in the journey towards a debt-free life. You can do this by
taking stock of your debts, and looking through cash flow statements and profit/loss statements in order to get a good idea of exactly where your business is at with regards to its financial health.
If you haven’t already done so, it is highly advisable that you set up a bookkeeping system from now on, as it will assist you greatly in keeping track of your financial situation.
Consider Taking A Loan Out
The next step to take is to consider if you would like to take a loan out or not. You can consolidate your debts with a loan from Latitude Finance.
With just one easy application, you could easily combine your debts into a simple, fixed-interest loan that’s tailored to your needs, lifestyle, and budget.
You will be able to take out loans on terms anywhere between 2-7 years, ensuring that you can steadily pay the amount borrowed back, whilst at the same time still keep your business afloat.
Chase Up Money That It Owed To You
Now more than ever, you need to keep a tight watch on all the money that is owed to you. Do you have customers who still owe you huge sums of money? Now is the time to contact late or non-paying customers.
If you are having trouble getting paid, consider reporting your non-paying clients or getting help with dispute resolution. Every dollar that you can get back counts, especially when you have debts of your own to pay back.
Don’t Forget To Prioritise Your Debts
Being in debt is one thing, and prioritizing your debts is another. Prioritising your debts can be a quick and easy way to get your creditors off your back, and is what stands between a business that cave when in debt and businesses that trudge through this time of financial hardship.
To start off, begin by identifying what you can afford to pay right now and what you can afford to pay in the near future.
After you have consolidated this information, create an action plan and pay off any immediate current debts. You can then choose to go on a payment plan after your immediate debts have been paid off.
Don’t forget that preparing a budget is a wise choice, as it can help you plan and direct
your money where it matters the most.
Lastly, There Is No Shame In Seeking Help
Last but not least, seek help, advice and assistance as much as you possibly can. There is no harm in equipping yourself with all the information you can get.
If your debts are becoming a serious problem, seek help before the situation becomes unmanageable. You can do so by contacting the National Debt Helpline or the ATO to register for business assistance.
We hope that these pointers have steered you towards a path to financial freedom for your business.
Always remember, debt doesn’t have to spell the end for your business. By taking active measure and making some smart choices, you’ll be back on your feet in no time.