Did you know that around 50% of small businesses fail within their first five years of opening their doors? If you currently feel like you are drowning in business debt and want to avoid being part of this statistic, we are here to help.
Keep reading to learn how to eliminate that debt and get into good financial standing.
1. Boost Sales
If you boost your business sales you will be able to pay off your debt quicker. There are endless options to boost sales, you just have to get creative. You can start by selling more to your current customers because they are already familiar with your company, your brand, and your products or services.
You can get more active on social media to engage with new customers and current customers. This will help build trust within the community and in turn boost sales. Please don’t forget that the point of boosting your sales is to use the extra money to pay off your current debts not to get into more debt because you are bringing in more cash flow.
2. Debt Consolidation
Going through this will not get rid of your debt but it will consolidate everything you own into one payment. Debt consolidation might make it easier because you will only have one payment to worry about. The only way debt consolidation will make sense is if your interest rate will be lower than the interest on your current debt.
If the quote you receive offers you a loan amount with the same payment as you are currently paying along with higher interest – then do not take this option. It would not make sense in that case and unless you can negotiate lower interest rates then do not move forward.
We recommend taking a look at reviews such as debthunch reviews to make sure that you are going with a company that is reputable.
3. Negotiate Terms
If you have long-term vendors or long-term suppliers contact them to negotiate better terms to reduce costs. There are some vendors that are willing to work with you and might extend your payment terms. For example, instead of a 30-day net payment, they might offer you a 90-day net payment.
Vendors might also negotiate to give you a discount if you pay faster than their due dates. This can save you a nice percentage off of each bill. Make sure that whatever agreement you come to with the vendor, you get it in writing to ensure that they abide by their agreement.
Ready to Tackle That Business Debt?
Now that you have our tips above to help you get rid of your business debt, you can get to work. It is time to tackle the debt and feel the weight lifted off your shoulders. By using the tips above you should be able to reduce your current debt and eventually even eliminate it.
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