Does the thought of bankruptcy send chills down your spine? If it does, you’re probably somebody who has a company that has accumulated some debt over the years and you’re scared on the never ending bill payments and the uncertainty of financial stability within your company. If you want to get rid of the anxiety that comes with keeping track of your debts, there are many bookkeeping accounting services out there that would help your company out of this pickle but you could also do it on your own as mentioned below.
Monitor Your Debts
Monitoring debt is absolutely mandatory if you have hopes of running a company without any obstacles and troubles along the way. The best way to go about this by yourself is to use a planner or a mobile app and jotting down all of your bills, loans and expenses then mentioning your interest rates or the amount that is to be paid. Following the above mentioned method of keeping track of debts will keep your organized, inform you of your debt and will allow for you to update on the amounts as you pay off interest and watching the amount of debt decrease will be calming process.
Often people make a big mistake by taking debt consolidation loans when they could’ve easily paid off the debt over a couple of months but due to the lack of patience they throw themselves into a deeper pit. The reason that debt consolidation loans are a deeper pit is because of the fact that financial institutes are always looking to make money so they wouldn’t offer such loans if they did not profit in the process.
You may come across debt consolidation rates that are much lower but then they may have increased the term of the loan which would mean that it would take you much longer to settle your loan.
Decrease Your Expenses
The ways a business could reduce or manage their expenses are endless and easy to carry out. Managing expenses can directly impact how much of money can be saved. You could decrease your expenses in several ways such as conserving energy or cutting back on business trips that may not impact your finances. You could go about conserving energy and saving money by introducing low voltage lighting in the office, encouraging employees to close taps properly after visiting the washrooms and such.
Another great way to save money is by buying your office furniture through shops that sell second hand furniture. You can find great deals at places like these for a fraction of the cost.
There are many other ways of saving money such as paying off your invoices before a set time in which case, some of the businesses will offer discounts which is pretty amazing. It is even better if you manage to get discounts on most of your invoices so that your expenses could be reduced drastically.
Eliminate Debt
There are many ways to eliminate your debt without taking any drastic measures in order to settle your debts but if your debts are a much larger amount than you could ever pay off, consider and look into consolidation loans but pick one that is gives you the best deal on a consolidation loan.
Another way to eliminate your debt would be to ring up your creditors, explain to them about your situation and ask them if they are willing to lower their interest rates and some creditors may consider this if you have been a client that always paid on time and someone they’ve had no prior troubles with.
Do your company assets include company cars and other automobiles and if this is the case, you consider selling these to make money but if your company is in field such as fast food delivery then analyze your amount of orders per day and clientele before making this decision. Your assets do not have to be just automobiles, you could contain other things that could be sold in order to settle your debts and become debt free.
If all else fails, you could ask your family or friends for help. You could ask them to lend you some money in order to settle and finish your debts. Your family or friends are most likely to help you out in moments like these.
The above mentioned tips and tricks will definitely help you avoid and steer clear of bankruptcy so make sure you read through carefully and take steps towards implementing these tips in your work life.