You need money to grow your business, but too much debt can put your business at risk.
The simple solution is to adopt measures that can help you effectively manage your debt. And to help you, Eazy Cash, a Canadian-based cash advance lender, has a clear list of things to do.
Best Tips for Managing Small Business Debt
Here are some simple tips for managing your company's debt, for alternative lender Eazycash.ca.
View interest rates
Is the interest on your commercial loan significantly higher than the current rates? Do you have a solid credit history? Either way, you should consider refinancing to get a loan with lower payments.
Before approaching a lender, make sure you have reviewed your credit report to understand where you stand.
Negotiating with creditors
If you have long-term business relationships with suppliers, or if you hire the same suppliers for bulk orders, you can try to negotiate a discount.
To get a good deal, emphasize your good payment history. You can also team up with other small businesses to submit larger orders at lower prices.
Optimize the space on your premises
Do you have parts of your premises that you do not use today? You may want to consider subleasing the space to others to reduce your rental costs.
Consolidate several loans
You may have taken several loans for different purposes, which resulted in higher monthly payments. A simple solution is to consolidate multiple commercial loans into one payment. This will reduce your monthly costs without impacting your credit score.
Consider redundancies
For a small organization, firing employees is a difficult decision. This affects the productivity of your business and creates a delicate work situation. But in some cases, it can help you stay afloat. Consider it only if you have exhausted all other options.
For other practical tips on managing your company's debt, see the infographic below:
Calculating finances Photo via Shutterstock