What is Debt Management?

Debt management is the way to get the debt under control the finances of the business  through financial plan and budgeting. 

The goal is of the debt management plan is to get out of debt by using the right strategies according to the business needs. 

Strategies to get the Business out off Debt 

1. Take an inventory of your debts. 

Make a list of all your debts from the highest to lowest interests rates and monthly payment. This will help you to prioritize which one has to be pay off faster. 

New small business must aim to pay all the debts within the next 12 month to avoid to put the business in risk. This are the recommendation of the experts. 

2. Boost Sales 

-Understand your customers and reward loyal customers. When you engage with your customers and listen to their opinions and questions, you can better understand their concerns and take steps to improve your product or service. When you address your customers' concerns and needs, you build their loyalty and trust because you served them well.

-Get active in social media

-Consider to increase price 

3. Cut Costs

Sometimes the expenses are a little bit high, here are some suggestions to help to increase your sales and by cutting some costs.

-stop paying for equipment you do not need

-Look for cheaper credit card processing service

-Renegotiate your lease or move to a cheaper      place. 

-Reduce professional fees.

-cut office supply cost

4. Refinance High-Cost Debt

It is beneficial for small businesses to refinance their loan to a lower fixed interest rate, to pay the loan quickly. Also transferening the credit card balance to another that is offering 0% interest for a promo period, can help to pay the balance faster.

5. Shorten Payment Terms with Clients.

If the business has clients on a long-term payment plan, here are some ideas to consider on how to reduce the payment plan. For example: 

-Give new clients a 30 day payment plan, rather than 90 day. 

-Discuss payments terms clearly.

-Provide multiple term methods

-Accept direct debit payments

-Offer an early payment discount

References 

how to increase sales

    https://www.indeed.com/career-advice/career-development/increasing-sales

How to Get your Business

    https://www.nerdwallet.com/article/small-business/how-to-get-your-business-out-of-debt

How to Cut Cost 

https://www.nolo.com/legal-encyclopedia/free-books/small-business-book/chapter2-4.html

Shorten Your Payment

        https://www.ordermentum.com/blog/shorten-your- payment-terms-to-have-cash-come-in-more-quickly

Reasons why Debt is Good

https://www.crestmontcapital.com/blog/reasons-why-debt-is-good-for-your-business#:~:text=Debt%20is%20an%20affordable%20method,expansion%20alone%20on%20their%20own.