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John Reilly • March 25, 2024

Reducing Debt

Reducing business debt is crucial for financial health and sustainability. Here are a few strategies for businesses to help with cash flow:

  • Conduct a comprehensive review of your business's financial statements.
  • Communicate with suppliers and creditors to negotiate better payment terms.
  • Implement effective cash flow management to ensure timely invoicing and payment collections.
  • Explore debt consolidation options to combine multiple debts into a single, more manageable loan.
  • Conduct a thorough review of business expenses, and identify non-essential costs that can be cut without affecting operations.
  • Explore opportunities to diversify and increase revenue streams.
  • Seek advice from financial advisors and develop a debt reduction plan with professional guidance.
  • Evaluate the possibility of selling underutilised assets.
  • Review credit terms offered to customers.
  • Ensure optimal productivity from your workforce.
  • Cross-train employees to handle multiple roles, avoiding the need for additional hires.
  • Stay on top of your tax and compliance obligations and avoid penalties and interest charges.
  • Review business insurance policies to ensure adequate coverage.

 

How do you manage debt in your business?



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