Owning a business is undeniably challenging, and financial difficulties can make it even more stressful. Although some business debt is almost inevitable at some point in the early development of your company, you still want to do everything you can to reduce the amount of debt you have and eventually eliminate it altogether.
The good news is that you don’t have to live with debt forever. By taking some intentional steps, you can reduce your small business debt in Oklahoma City, OK and focus instead on growing your business and increasing your financial assets.
Assess your situation
You can’t address a problem until you have accurately determined its scope. Work with an accountant to take a full and comprehensive inventory of your assets and debts so that you can determine where you stand with your finances. In some cases, you might even realize that you aren’t in as bad a spot as you thought—the important thing is to face your debt head-on rather than ignoring it. The sooner you come to terms with the situation you’re in, the sooner you will be able to effectively address it.
During this assessment, it’s a good time to make a budget for your business. Take a look at your spending and consider some ways that you might be able to cut costs. For example, instead of taking customers to an expensive dinner, take them for a nice lunch. You can work with your accountant on this to make a sensible budget that you’re able to stick to.
Consolidate and restructure
Once you’ve determined your precise financial situation, you will need to make a plan to address your debt. Most people have heard advice to “pay yourself first,” and this principle can be applied to debt, too. Before you spend anything, make your monthly loan payments. This will keep you on track to get out of debt so that you can avoid late penalties and other adverse effects.
One tactic you can consider when it comes to your debt is consolidation. With debt consolidation, you take out one loan (preferably one with low interest) to pay off your outstanding loans and debts. This allows you to minimize confusion around multiple complicated loan terms and avoid high interest rates. Although this method works well for many business owners, you should make sure to consult a professional who specializes in dealing with small business debt in Oklahoma City, OK. They will be able to help you determine whether debt consolidation is really the best choice for your specific circumstances.
Reduce your small business debt in Oklahoma City, OK
Do you have questions about how to mitigate your small business debt? At Chrisman & Chrisman Financial Services, we would be more than happy to help you. For decades, we have been helping our clients navigate their financial circumstances to ensure that they stay on top of their revenue, spending, payroll and taxes. For information about our rates or to schedule a consultation, simply reach out to us by phone today.
Categorised in: Small Business Debt
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