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| Image courtesy of Stuart Miles / freedigitalphotos.net |
As the economy continues to change, experiencing ups and
downs constantly, it is important to stay ahead of your company’s debt so that
it doesn’t end up harming you down the line.
Managing debt is the single most important aspect for a company to stay
in business because without proper debt management, there will be no company for
long.
One of the best ways to properly manage your debt
effectively is to review your interest rates on your loans. If your current loan interest rate is
significantly higher than a typical loan for your business size and credit
rating and history, consider refinancing it to lower your monthly payments and
possibly even lowering your interest rate.
It is extremely important that your credit history is solid for this to
work. By having a solid credit history,
you are going to be more likely to see a fair interest rate because it shows
that you and your company are great at handling your finances.
Next, take a look around at your company. Is there any waste? Is there equipment or a whole area in our
building that we are not using? One good
way to manage debt is to sell or rent out things that the company doesn’t need
or use. If you have a machine sitting
around catching dust, consider selling it to help pay off some of the company’s
debt. If you have a whole second floor
in your building that you are not using, consider renting it out to bring in
more money for the company.
Managing debt smartly and effectively is the name of the
business game. If you are unable to
handle your finances properly and make payments on time, you will not have a
business for long. Be smart with your
money and pay off liabilities as soon as possible. You will be glad you did.
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