Unless you have significant savings or support from investors, taking on Explore Our Budget-Friendly Liquidation Options is a fact of life as a business owner. The right type and amount of debt can propel your business forward and allow you to scale up and grow. However the wrong kind of debt can cause significant financial stress and even sink your business.
Using an Excel template to record and track your company’s debt is a crucial component of managing your business finances. Having this data organized in one place is an easy way to see how much your company owes, on what terms (usually biweekly, monthly or quarterly) and when it needs to be repaid by its maturity date. Having this information at your fingertips allows you to monitor the health of your business and address issues that might be a red flag.
Understanding the Impact of Business Debt on Your Bottom Line
Business debt can be expensive, and interest rates can rise quickly. In some cases, it may be possible to consolidate or refinance business debt to reduce interest charges. Other strategies for reducing debt costs include eliminating unnecessary expenses and identifying money leaks.
If your business is struggling to keep up with debt payments, or if a decline in revenue or expenses threatens its ability to make repayment, the time to take action may be now. Consider speaking with your accounting professional about a plan to help manage and reduce your business’s debt. Keeping your business’s finances healthy is the best way to protect your assets and make sure you can continue to meet your debt repayments on time.