Even the most successful businesses will have had to negotiate debts at some stage in their life cycle, so being in debt isn’t strictly a problem in itself. It’s how you approach managing that debt which will determine whether your business thrives or flounders.
Relationship management is often crucial to effectively handling business debt. If you have a good rapport with suppliers and creditors, you can draw upon those relationships to ease cash shortages or, in the case of debtors, negotiate more favorable terms. This could take the form of combining several loans into the one repayment so that interest costs are lowered, or maybe teaming up with other small businesses who aren’t competitors by submitting bulk orders at lower prices.
This infographic from Eazy Cash (http://www.eazycash.ca/car-title-loans/) offers some advice to businesses on how they can reduce debt levels starting off so that it doesn’t come back to bite them hard further down the line.
How to Effectively Manage Business Debt (Infographic)