“There is really only one way to address business debt issues and cash flow crunches, and it is planning so you can prevent them in advance.”

Solutions for Business Debt and Cash Flow Issues

Here are some ways businesses can dig out of debt when cash flow is constricted and credit markets are tight (increased interest rates):

1. Cut Unnecessary Costs and Free up Cash Flow
   Identify the parts of the business that contributed to the issues in the first place.
   
   If customers aren't paying on time or your expenses are too high, consider ramping up collections efforts and ditching unnecessary expenses such as office space or costly services that are not needed. Another way to free up cash: Sell off dormant inventory, equipment, etc
   .

2. Revisit the Budget
   If the debt keeps piling up, then it most likely means the company's current budget isn't really working out.
   
   Create a budget based on the business's current financial situation. Make sure your business's revenues can more than cover your fixed monthly costs like rent and utility bills. Then, allot a portion of the budget for variable costs.
   

3. Prioritize Debt Payments
   Tackle the business' debts with highest-interest rate and short terms (less than 12-months) first. 
   

4. Speak with Creditors
   Discuss your business' financial situation with your creditors and propose a hardship plan that may provide better payment terms.
   
   If the creditor doesn't offer one, request a payment plan or a reduced settlement amount.
   
   Make it clear that "the less they're willing to accept or the more they're willing to reduce your debt, the faster you will pay them," he says.
   
   Just make sure you can fulfill your end of the bargain. The worst thing a business owner can do is set up a repayment plan with a creditor and then default on the new plan.
   

5. Consolidate your Business Debt
   Consolidating your loans into one payment allows you to reduce monthly debt service costs.
   
   The best-case scenario is consolidating several shorter-term loans into one long-term loan longer than 12-months.
   

6. Seek an Adviser
   Negotiating with creditors can be a difficult and unnerving experience.
   
   If creditors are unwilling to work with you, you can enlist us to advise and assist you in Business Debt Refinancing and Restructuring.

BUSINESS DEBT & CASH FLOW SOLUTIONS
 

Bernarsky Partners LLC is a business financial services advisory firm comprised of finance professionals with extensive industry experience offering Business Debt Solutions.

Some of our Business Debt Solutions include:

1. REFINANCING BUSINESS DEBT

2. RESTRUCTURING BUSINESS DEBT

3. BUSINESS REORGANIZATION

4. BUSINESS CASH FLOW ANALYSIS

Setup a free consultation call  with us to review your business debt and cash flow situation, business goals and to discuss Business Debt refinancing and restructuring options.