Managing the finances of your business is probably the most difficult part of owning a company. At any moment you could be faced with an unexpected event that requires money, and if you’re not prepared, it could spell disaster. There are a few different ways to manage and pay off business debt or CBILS.
In order to help you avoid this problem, we’ve compiled 3 tips to manage and pay off business debt as quickly as possible!
Refinance or consolidate debt: This means taking out a new loan to pay off existing debt. This can be a good option if you can get a lower interest rate on the new loan. By doing this, you consolidate all of your loans and credit lines in to a single account. Moreover, adjusting your payment conditions can result in a lower interest rate.
Talk to your creditors: If you’re struggling to pay off your business debt, it’s important to talk to your creditors. Let them know what your financial situation is and see if they’re willing to work with you. They may be prepared to cut your interest rate or expand your monthly repayments. This can give you some breathing room and make it easier to pay off your debt. Ex: A debt management plan or IVA is an agreement in between creditors and debtors to make a set monthly payment.
Prioritize payments: Your business debt won’t be manageable overnight. You must choose which debts to pay off first. Prioritize repaying loans with the highest interest rates. The longer it takes to pay off the debt, the more you’ll end up paying in interest.
Need help to manage and repay business debt & bounce back loans? Don’t worry. At Acme Credit Consultants Ltd, we have more than 14 years of experience helping UK people in the stress-free management of corporate debt. Call our team at 07779648018 to set up a free consultation right away.