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If you want to move towards a debt solution, then be sure to check out these seven practical steps.
1. Figure out a budget and prioritize your debts
If you want to learn how to create a budget, click here.
When it comes to debts that should be prioritized, they are as follows:
Loans from the bank
Payments for critical suppliers
Any type of borrowing that has a personal guarantee
2. Get loans refinanced or consolidated
It is a good idea to:
Get all the loans you may have and consolidate them so that you only need to make one payment
Get single loans refinanced
With that said, if you want to refinance or consolidate loans, be sure to get independent advice first.
3. Obtain assistance for dealing with customers who pay late
Contact the Small Business Commissioner in order to handle customers who pay late and they will help to resolve the problem.
SBC or Small Business Commissioner is responsible for:
Receiving and considering small business complaints. Small businesses are defined as those that have less than 50 employees. The SBC has to receive complaints of payment issues from small businesses when it comes to their payment issues with larger businesses. Large businesses have more than 50 staff members.
They also provide recommendations on the best route for dispute resolution. Keep in mind that if there is any litigation between the two parties, the SBC won’t get involved.
The Small Business Commissioner will provide advice on getting your invoices paid promptly.
If an individual or company has a payment outstanding for you, there are multiple options that you can consider.
4. Improve your cashflow control
There are lots of things that you can do to improve the cash flow of your business.
Be sure to check out our article on it.
5. Decrease spending
If there is a lot of unnecessary spending, then you should try to reduce this as much as possible.
A good example of this is to remove the automatic renewal of your insurance.
Every year you should look at all your needs, and then look at what a variety of insurers offer.
In the same way, if you shop around, you can easily find places that sell office supplies much cheaper.
6. Increase revenue
You should always look for ways to earn more money.
A couple of ways that you can increase your business’s revenue include:
– Increasing your current rates
– Getting more leads so that you get more customers
– Upsell or cross-sell products or services
7. Get input from your employees
When it comes to increasing your revenue or reducing spending, you should talk to your employees about how you can achieve this.
They may provide you with many ideas to help you achieve your goals.
Additionally, it is a great team-building exercise that will improve overall engagement.
You may also like: How to Consolidate Debt with a High Debt-to-Income Ratio
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