Bid Goodbye to Your Business Debts in 7 Ways!
Business debt can be a big stress for the business owner and often results in spending more time worrying about how to reduce it than growing the business. While money is required for any business to run before the anticipated profits begin to show, it is prudent to ensure that short term working capital loans are not stretched. Consider a low interest short term business loan Bajaj Finserv and bid high interest loans adieu.
Here are 7 ways to say goodbye to business debts with ease:
Cut unnecessary Expenses
In every business, there comes a time when although sales are in progress, there is no cash in hand to pay off the debt. This is the time to step back and analyse where the money is getting stuck. Cut unrequired expenses and streamline your business.
Don’t offer customers credit for too long
If receipts are being delayed, dedicate a team to follow up with customers and collect the money due to you. This will reduce working capital debt and the excess money in the system can be repaid to reduce interest costs.
Extend vendor payment due dates
Speak to your business vendors to allow yourself a longer credit period so your small business can benefit from the additional time to make payments. This will help when the business is awaiting overdue receipts, as the surplus cash can be used to repay debt.
Prioritise debt payments
Look into the books to see which debt is incurring the highest interest and work on paying off that debt as the first priority. While your business will lose some money, this practice will also help you to get rid of the additional interest burden.
Refinance your loans
Once you establish which loans are your high interest loans, a smart move is to refinance your expensive debt with the best interest loan that targets the money where it is required. Bajaj Finserv provides dedicated solutions that include working capital demand loan among other startup business loans, which act as a buffer when required and offer low interest along with hassle-free signup.
Rework your budget
Recalculate the business budget to cut out unimportant expenses that may have been necessary earlier. This streamlining will free up some cash, which can be used to pay up debt thus freeing the interest demand on debt.
Sell unwanted scrap
Every business generates scrap that is often overlooked. Spend some time to learn the best price you can get for the scrap that the business is generating and start selling it to vendors or even online to generate additional funds, which can be fuelled back into your business.
At Bajaj Finserv, we understand the advantages of a low debt business and our small business loans are geared to provide the flexibility every business craves. From short-term working capital loans to working capital demand loans to secured business loans, all our facilities offer no cost prepayment options and provide competitive interest rates.