Debt is a natural part of any business’s growth trajectory. In today’s competitive market, most companies need to take on some level of credit to scale their operations. However, poorly managed liabilities can be crippling.
To avoid such a scenario, here are seven strategies you can adopt to manage your monetary obligations and propel the growth of your business.
Prioritize
All debts are not created equal. Some are more critical to your operations than others, while some are simply a means to an end. Prioritizing can assist you in separating the wheat from the chaff, giving you a clearer picture of your most pressing financial obligations. You can focus on paying high-priority commitments first, reducing financial stress and freeing up cash for critical initiatives.
Use the Right Financial Tools
In your quest to manage debt, you should arm yourself with the right financial tools. For instance, you can use online budgeting tools to create a realistic budget and track your expenses or look for payment platforms to help manage your payments seamlessly.
Negotiate With Your Creditors
If you’re struggling to make ends meet, your creditors may be willing to work out a payment plan to better suit your financial situation. In some cases, they may be willing to reduce your interest rates or extend your repayment period, affording you some much-needed breathing space.
Consolidate
Consider consolidating your debts into a single loan with a lower interest rate. You may be able to reduce your monthly payments and simplify your payment process. It may also be worth exploring loans offering flexible repayment terms or requiring little or no collateral.
Focus on Increasing Your Revenue
Channel your energy into increasing your revenue. Try expanding your product lines, exploring new markets, or boosting your sales and marketing efforts. The more money you bring in, the easier it will be to grow your business.
Stay Up-To-Date on Your Financials
You need a clear picture of your financial situation. This means keeping your books up-to-date, tracking your revenue and expenses, and monitoring your cash flow. By doing so, you’ll be able to identify potential financial issues before they spiral out of control and take corrective action.
Talk to a financial advisor
It may be prudent to seek guidance from a financial advisor who can help create a customized financial plan that aligns with your goals and assists in navigating the challenges of debt management.
At Independent Financial Services we have professionals who can guide investment strategies, offer tax-efficient savings options, and assist in retirement and business succession planning.
Schedule a call with us today to learn more about how we can help!
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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but there is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
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