With rising expenditures and stringent borrowing conditions, many small businesses in Orlando, FL, find themselves deep in debt. While taking out loans can help finance your business objectives and growth, it can quickly overwhelm you if not taken care of.
If you’re dealing with business debt and your current financial cannot support it, there may be a chance to save your company without going bankrupt. Keep reading to find out effective ways to pull your business out of debt.
Cut Your Costs
The first thing to evaluate is your business expenditures. Analyze each expense and strategically cut out costs that can help you save money without affecting your operations much. It’s possible that the things you think you need might not be that important.
You can choose from making multiple cuts, such as going paperless, reducing administrative costs, etc., or a single large one, like moving to a co-working space. Depending on your debt amount, you can also choose a combination of both.
Find Innovative Ways to Increase Your Revenue
Increasing revenue will get you the money you need to pay off your debt. Try different strategies to improve your cash inflows. Offer discounts and promotions to attract more customers—promotional deals encourage consumers to buy more things. However, reducing the price too much may counteract your ability to generate more revenue.
You can also try increasing your price. This can be tricky because expensive rates tend to scare customers away. But with the right marketing and advertising strategy, you can communicate the value of your products and attract the right customers.
Another great way to acquire more money is by liquefying excess inventory and assets. Look for equipment and assets you don’t use anymore and try to sell them.
Put Your Negotiation Skills to Use
Most business owners don’t realize that lenders and creditors don’t want your company to shut down. If your business fails, they will get nothing. It’s beneficial for creditors to work with you because some money is better than none.
Discuss your issues with the ones who’ve lent you money—otherwise, you might miss out on a great deal. Try to negotiate better terms to manage your debt. Ask for smaller minimum payments, extended plans, lower rates, etc., and your creditor may offer you a way out.
If nothing else works, you can go for debt consolidation. It’s the process of merging multiple debt balances into a new, larger loan. You can take out a big business loan to pay off all your previous small loans, then you have only one debt to repay. This gives you the opportunity to get a loan with better terms than all your existing ones. These terms can include a lower interest rate overall, extended and flexible payment terms, and lower repayments.
At Whitestone Fund, we can help you get out of business debt by offering viable financing solutions. We are aware of the issues most businesses face—therefore, we provide our clients with quick access to cash to help them overcome their problems.