Do you feel like your business is struggling? Are you feeling overwhelmed with your debt? If so, don’t worry – you’re not alone. Many businesses and individuals find themselves in this position. But that doesn’t mean you can’t turn things around.
In this post, debt help experts Creditfix suggest top tips to help strengthen businesses looking to tackle their debt head on. Through helping hundreds of business owners beat debt, Creditfix provide advice on everything from mortgages to what to do if your debt has been sold to a debt collection agency.
Check out the tips below:
1. Review Your Business Debts And See Where You Can Make Savings
If you’re looking to get on top of your business debts, the first step is to take a close look at where your money is going. Are you currently paying more interest than you need to? Could you be making some simple changes that would reduce your monthly repayments and help you clear your debt faster?
2. Create A Budget And Stick To It
If you don’t have a budget in place for your business, now is the time to create one. Once you know exactly where your money is going, you can start to make changes and see where you can make some savings. Make sure you stick to your budget – it will be tempting to overspend when business is good, but if you’re trying to clear debt, it’s important to be disciplined.
3. Get Help From A Professional
If you’re struggling to get on top of your business debts, it may be worth seeking professional help. There are plenty of debt management companies out there who can give you advice and support – and in some cases, they may be able to negotiate with your creditors to reduce your monthly repayments.
4. Prioritize Your Debts
If you have multiple business debts, it’s important to prioritise them. The first step is to list all of your debts from the highest interest rate to the lowest.
Once you know where you stand, you can start to make a plan for repaying them. It may be worth focus on clearing your most expensive debt first, as this will save you money in the long run.
5. Make More Than The Minimum Repayment
If you only make the minimum repayment on your business debts, it will take you longer to clear them – and you’ll end up paying more interest. Where possible, try to make extra payments to reduce your debt faster. Even an extra £50 a month can make a big difference.
6. Consider Consolidation
If you have multiple business debts, you may be able to save money by consolidating them into one loan. This can help to reduce your monthly repayments and make it easier to keep track of your debt. However, it’s important to make sure you shop around for the best deal – and make sure you don’t end up paying more interest in the long run.
7. Don’t Be Tempted By Debt Relief Schemes
There are plenty of debt relief schemes out there that claim to help business owners get out of debt. However, many of these schemes are nothing more than scams. If you’re thinking about signing up for one of these schemes, do your research first and make sure you understand the risks involved.
8. Review Your Business Model
If you’re struggling with business debt, it may be time to review your business model. Are you selling the right products or services? Do you need to make some changes to your pricing structure? Are there any areas of your business that are costing you more than they should?
9. Review Your Expenses
When was the last time you took a close look at your business expenses? If it’s been a while, now is the time to do it. You may be surprised to find that there are some areas where you’re spending more than you need to. Make sure you review your expenses on a regular basis and cut out any unnecessary costs.
10. Make A Plan
If you’re serious about getting on top of your business debt, you need to make a plan. Work out how much debt you have, what your repayment options are and how much you can realistically afford to pay back each month. Once you have a plan in place, stick to it and don’t be tempted to overspend.
If you’re struggling with business debt, these ten tips should help you get on top of it. However, if you’re still finding it tough, there is plenty of help available. There are dozens of organisations out there that can offer advice and support, so don’t be afraid to ask for help if you need it.