Debt. It can keep you up at night and make you worry about how you’re going to ever repay it. When you’re a business owner who has to juggle all the stress of managing a business and your accounts, it can be overwhelming. That said, debt is an inevitable part of managing a business. Whether it’s a business loan, a company credit card, or an equipment loan – debt is something that can actually be very positive. Despite this, too much debt can be troublesome and downright problematic. We have created this guide to help you manage your debts and we hope it helps you get things back on track.
Take an inventory/run reports with your account-keeping software
One of the first things you will need to do when looking to manage your debts is to figure out where you stand. You can perform an inventory check with your accounting software, or you can run reports which generate your overall performance within the business. With this information, you need to also run through all debts, committed funds, incoming invoices, outgoing expenses and any other financial matters to consider. From here you can make a whole-picture assessment of your business and work out how much you need to make to bridge the gap.
Consider raising your prices (but be smart about it)
It is possible to boost your sales through increased prices – but you need to be smart about it to ensure that you don’t scare off customers. Consider raising prices but offer greater value as you do so. You might like to offer a volume discount, for example, as a way to incentivise your customers to purchase higher amounts from you.
Use a debt collection agency to recover missing accounts and get the money back where it belongs: with you!
If you are waiting on outstanding invoices from customers, then consider working with a debt recovery agency like Strathmores. We turn unpaid invoices into money in your bank account. And we do it without compromising the existing relationship you have with that purchaser. When it comes to business debt it can be crippling – especially given that cashflow is such an important part of keeping your business going. Contact us to find out more about our tried and tested methods of debt collection for business in Brisbane and Sydney.
Refinance high-cost debt
Are you working with high-cost debt and struggling to manage? Think about refinancing your debts for a lower interest rate. You can even consolidate a bunch of high-cost loans into a single loan. This has the benefit of not only making repayments simple but means that you are not paying as much interest on your loan.
Cut your costs
You might be haemorrhaging money through office costs or with unnecessary purchases. We urge you to take a look at what kinds of things are costing you the most money (which you would have conveniently identified with your initial inventory) and then think about how you can reduce or eliminate them. Could you downsize to a smaller office? Could you go remote? Could you move into a co-working space? Think about splitting some costs with other service providers in your area or think about leasing equipment instead of purchasing. All of these things can put more money back into your accounts.
Want to know more about how we can help you with rounding up your business debts? Contact us online or call us now on 1300 347 929 to chat to one of our debt collection experts. We are here to provide support to your business when you need us the most.