If you like many people are stressed about your small businesses debts, don’t worry, you’re not alone. Many business owners report similar worries and stresses, and that’s not healthy. Struggling to sleep, feeling worn out and losing or gaining weight are all signs of stress, and how bad it is for you, however, business debts are not something you need to let weigh heavily on your mind. When you’re dealing with this situation, it can be very useful getting a Chartered Accountants in to take a look over everything, as they can make you see that the situation isn’t quite as dire as you imagined.
When it comes to your business, there’s a number of things you can do to help prevent the debt in the first place, deal with the debt when you’ve got it, and deal with the stress of having it. It’s not as big an issue as it might have grown to be in your head, and with a few basic rules of thumb, it’s not that hard to deal with.
Don’t End Up There in the First Place!
Before I say anything else, first of all, the best advice is always going to be avoiding debt full stop. The fact is, prevention beats curing, and while that isn’t all that helpful while your business is in debt, or your business model requires loans and the like, it does remain true. There’s a lot of different ways to mitigate the damaging effects of steadily building debt, including:
- Take out the right loans! When it comes to taking to taking out a loan for your business, don’t simply grab the most obvious choice. Do your research, look at different interest rates, services and options, and make sure you understand fully what you’re getting yourself and your business into.
- Build plans to pay off and deal with future debt. Never take a loan without a plan for how you’re to pay it off in the future.
- Avoid credit card charges by paying off your loan interest every thirty days, and ask for lower interest rates. As the saying goes; if you don’t ask, you don’t get.
- Get fixed loans not variable! You don’t want to find yourself paying more and more interest.
Don’t let it Affect Your Work
If your business is falling steadily into debt, and you’re letting it get you down, then that’s going to affect your work, and if your business is dependent on the quality of your labour or output, then you’re just going to be making it even harder when it comes to dealing with that debt. You need to keep plugging away, keep your business growing, and don’t let the situation overwhelm you or cause you to bury your head. Just imagine the worst case scenario…
The Worst Case Scenario
Chances are your business debts are in your businesses name and not yours. That means in most circumstances, you’re not liable to pay them. You, as an individual, are safe. However, your business is not. It might die, it might fail, but you’ve already started a business once, right? How hard could it be to learn from your experience and do it right in the future? You can hire an Insolvency Practitioners in London to help you through all the tough, tedious stuff, and essentially wash your hands of the whole affair. Don’t forget, that’s the very worst case scenario. There’s any number of ways to pay your business out of debt, including:
- Increase overall business cash flow to pay off debts. Kind of the obvious choice, but it works!
- Consolidate your loans. This is one of the fastest ways to minimise interest and quickly pay off debt. It allows you to combine separate loans, and pay less interest as a result, which can be incredibly handy when cash is tight.