Do you need a loan for your company? With us it is possible.
White Stone FundWhite Stone FundWhite Stone Fund
(Monday - Friday 9 am to 6 pm)

How to Avoid Bankruptcy — A Guide for Small Businesses

A small business owner shutting down her clothing company

Running a small business in today’s economy can be challenging, and many fail during their initial years. Keeping up with increased expenditures pushes businesses to fall into debt and eventually declare bankruptcy. However, bankruptcy isn’t the only way out and it’s avoidable with the right steps.

As a leading business financing solution provider in NYC, we have prepared a guide for small businesses to avoid bankruptcy. Keep reading to find out.

Reduce Expenses

The first step to avoid going bankrupt is reducing expenses. Figure out the money that you spend on a monthly basis and put together a viable budget. Find areas where you can cut costs, such as negotiating a better price from suppliers, reducing electricity bills, etc.

Write a Solid Business Plan

When starting small, many business owners don’t have a written business plan. Having a plan in your head isn’t enough; you need a solid written plan that clearly defines your goals along with tactics and strategies to achieve them. This will allow your team to be on the same page and take actions that achieve those goals.

Not having a written business plan can divert you from the end goal and no one might know what to do to stay on track.

Prioritize Debt Payment

Over-extending your debts can cause many problems for your business and even bankruptcy. While it’s not possible to run a business without taking a few loans, you should always prioritize their repayment. Before you take out a loan, see if your business can afford it and create a viable repayment plan.

Plan for Worst Case Scenario

As a business, you need to plan for the worst-case scenario to avoid disruptions to your business. Not every customer is going to stay, and your sales might decline in the future. You may even experience a setback, such as equipment failure, employee turnover, natural disaster, etc. it’s important to have an emergency fund that you can use during such times to prevent your business from going bankrupt.

When taking major business decisions that involve risks, make sure you thoroughly perform a risk assessment and consider all options.

A person is signing some papers

If you need more advice on debt or are experiencing cash flow problems, we can help you. Whitestone Fund offers short-term business loans and Merchant Cash Advances for Businesses in NYC with flexible repayment schedules and lenient terms. Our business loan agents work by your side to help you determine the right financing solution according to your sales projection, current situation, and needs. Contact us for details.

Leave A Comment

Subscribe to our newsletter

Sign up to receive latest news, updates, promotions, and special offers delivered directly to your inbox.
No, thanks