Many businesses suffer from unwanted debt. Borrowing makes sense to improve cash flow, grow and expand. But, when you borrow too much and cannot pay back what you owe, your business is compromised. Creditors come knocking at your door, adding stress, anxiety, and disrupting focus on your business. Tackling debt early is easier when you are proactive rather than neglect the issue until debt almost consumes your business.
Cutting costs can help keep your head above water. Think about subleasing unused space or sell unused equipment. Although it is the last thing you may want to do, shrinking your staff may be necessary to keep the doors opened.
Stay on top of your incoming cash flow. Do not allow your clients to miss or delay their payments. Even if you have suppliers with delinquent payments, you can offer to arrange discounts if paid immediately and in full.
Do not ignore any lenders. This can make your situation worse. Letting creditors know about your situation will make it easier for you long term. It is in both parties’ best interest to find a solution to your debt problem. You can request lenders to lower your interest rates, increase your credit line or restructure repayment options.
If the burden of debt is taking you away from the most important task: running your business, contact American Finasco. American Finasco has several options to reduce your commercial debt which allows you to stay focused on your business. We provide strategies and take the pressure off business owners who are having a hard time managing their debt. We provide our clients with effective solutions for business debt relief.