Tips to ward off debt in small businesses

Posted on Thursday, July 28th, 2016 at 6:30 pm    

Due to limited resources, small businesses are at a high risk of acquiring too much debt too quickly. The U.S. Small Business Administration estimates that nearly half of businesses fail within five years because of debt. Here are some tips to consider that may keep your business afloat.

  • Temporarily replenish business funds by using personal funds if it will generate more income or will result in the long-term stability of the business.
  • Rent out unoccupied spaces and sell business equipment that is unnecessary.
  • Minimize your workforce, but keep efficient workers, to lessen overhead costs.
  • Keep in touch with vendors and customers to better understand how you can further improve your business.
  • Always remind lenders that you are taking actions to settle your debt. As such, lenders may help you by reducing your interest rates.
  • Try to have your debts consolidated into one payment to make monthly payments affordable and convenient.

A Raleigh attorney at the Bradford Law Offices, PLLC can help you if your business is struggling due to overwhelming debt. We will offer you realistic solutions to give you a better start. Call us today at (919) 758-8879 to learn more about your options.