Your Small Business’ Debt – Is There A Way Out?

I am sure there are a lot of small business owners out there today wondering if there is a way out when it comes to small business debt relief. It can be a stressful situation especially when you are working so hard to ‘make a go’ at your new business venture.

It is not easy. Take a look at a few options that might help as presented by this contributed article.

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Almost all small businesses have faced some sort of debt at some point. The majority of small business owners will take out some sort of loan or credit card when starting up in order to fuel the sometimes huge costs associated with setting up a business, trying to reduce their small business debt.

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Many will use the money on web design, product development, manufacturing, market research, and various other areas. Engaging with professional lenders is a logical way of gathering funds to get things off the ground and up and running.

But the problem that comes hand in hand with this is that the majority of small businesses that have only just started out are not generating a lot of profit.

This can often result in problems, as you may find yourself facing difficulty when it comes to meeting payment deadlines at the same time as maintaining your business. But not to worry. There are ways to overcome your small business’ debt. Here are just a few different plans to consider.

Determine Whether You Need To Go Bankrupt

document to file for bankruptcy small business debt relief

If you have acquired huge amounts of debt and your small business really isn’t taking off, you may be worried that there’s absolutely no way that you will ever be able to pay the full sum of owed money back.

If this is the case, you may be fighting a losing battle when it comes to trying to keep your business afloat, and you may simply be wasting a lot of time trying to clear debts that will simply accrue huge amounts of interest in the process, making the venture futile.

If this sounds like something you are experiencing, you might want to find out more about bankruptcy and bankruptcy details.

Going bankrupt will clear all of your debts, meaning that you won’t have to pay them back any more. But it is a huge decision to make – you will face repercussions such as not being able to take out credit for a set amount of time after and you may have to sacrifice such basics as having a bank account.

So make sure it’s definitely the best path for you before choosing it and don’t go bankrupt over relatively small amounts of money.

Using Balance Transfers

If you have used credit cards for your small business, the money that you owe is likely to have a relatively high interest rate attached, meaning that you will have to fork out a fair amount of interest while paying the money back. To avoid this, consider taking advantage of a zero percent interest balance transfer.

Many lenders will offer to take debt away from your current lender and put the debt to themselves instead. They do this in hopes of you eventually paying interest to them.

However, if you clear your debt in the window when you have a zero percent interest rate, you could save yourself a lot of otherwise wasted money.

These are just a couple of steps that you might want to consider taking in order to clear your small business debt! Incorporate them into your professional financial plan sooner rather than later!

All the best.

Images courtesy of Pixabay and Pexels.


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4 thoughts to “Your Small Business’ Debt – Is There A Way Out?

  • Alan

    Hi Michelle, That is a very useful and practical article. In the UK there is an IVA (Individual Voluntary Arrangement), which is an alternative to bankruptcy, which is not as devastating on your personal situation. I don’t know if there is such a thing in your country or the USA. It basically involves coming to an arrangement with your creditors to pay off the agreed debts over a specified period of time. So the creditors are assured of getting their money even if they have to wait for it. Even so, it is quite a big commitment. Alan

    Reply
    • Michelle

      Hello Alan,
      This is very interesting – I have never heard of it before. And I like the concept. And the idea that your business gets to forego bankruptcy and try to work things out on its terms with the creditors – awesome. Thanks for sharing this info.
      Michelle

      Reply
  • DianneBee

    Debt is always stressful except for those few who have no conscience. The balance transfer technique is a very good one! It is quite manageable and I know someone who paid off college debts that way.

    Reply
    • Michelle

      Hello DianneBee,
      Yes, you are so right, debt is indeed a stressful situation that no-one wants to be in…and of coourse, for those without a conscience. Nice to know that one of the options has worked for someone. Thanks for sharing.
      Michelle

      Reply

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