While the amount of healthy Business Debt Advice is different for every business, it is always important to have specific growth plans and strategies for the company. According to Harj Taggar, co-founder of Triplebyte, a job portal for software engineers and startups, presenting a clear plan is the best way to handle debt. However, the initial step is critical as it will help curry the creditors’ respect and favor. It can also start a conversation on how to proceed.
Business Debt Advice – How to Negotiate and Eliminate Bad Business Debt
One way to get a debt reduction is by negotiating with creditors. The key is not to make it personal; instead, try to make a realistic budget and ensure that you can meet your repayment obligations. You should also avoid paying smaller amounts first and foremost. Your debts should always come first, so pay off the largest amount first. Even if it is a small amount, pay down the credit cards. Once you have paid down the minimum amount, you should be able to start raising funds.
If you have decided to approach a lender or a creditor, the first step is to assess your budget and identify the cause of your debt. Then, attack the problem by changing your collection terms and investing more time in chasing late payers. It is also important to consult a business debt advisor, as they may be able to spot issues that directors are not aware of. They will help you come up with a realistic plan to eliminate bad business debt.