Owning a small business is exciting, but it can also be very stressful, especially if the company is struggling with debt. Small business debt can be debilitating. It can be so overwhelming that the business has to close its doors after filing for bankruptcy. However, there are ways to keep the small business up and running by climbing out of debt.
The first thing you can do is revisit the budget of your business. If the debt keeps accruing, it likely means that the budget is not working. Taking a look at the budget will help you fight the debt issue. You will need to create a new budget that takes the current debt into consideration, which means lowering it considerably.
Part of revisiting the budget will include cutting unnecessary costs as much as possible. You must find the areas of the business that caused it to go into debt and go after those areas as much as possible. One reason you could be in debt is that customers are failing to pay their bills in a timely manner. Fix this issue immediately by improving your collection efforts.
You must make sure the debt that has the highest interest rate your top priority. This means repaying this debt first until it is completely paid off. For the most part, this will likely mean dealing with credit card debt, which can be accrued by small businesses just as much as individuals.
As always, speak with a bankruptcy attorney about your bankruptcy options. Not all of the above steps will help your small business find its way out of debt.
Is your small business struggling with debt issues? If so, visit our site to learn more about Chapter 13 bankruptcy and how a bankruptcy law attorney can help your company move forward.