We start a business with many dreams. Of course, we love to be an entrepreneur or to be famous as a businessman. For each step of our business, we need someone to support us, yes, especially financially.
Debt is an inevitable part of the business world because money is required at every single step of growth. But if we do not get the expected response from our clients or customers, everything turns down.
Debt will start to grow before us, and we may feel like it’s going to swallow us. But we are not ready to face failure, are we? No. Here are some actionable steps to get rid of your business debts forever from your life.
First of all, you should be confident and determined about dealing with your debt. You’re confident, that’s why you are here in search of a solution to your problem. You should be determined, never step back from this decision, because you can do it. It’s not impossible.
Try different ways to improve your income. More the revenue, faster you can solve your debts. Try to conduct promotions and sales, increase the trust of your clients and liquidate some of your assets. Once you improve your business, that is the best solution for your situation.
If you are feeling like business is not going to work now or you need to shut your business now and start later, you can do bulk selling or resales. But always keep in mind the marginal value. So don’t drop the price too much, money is in need.
Discuss with your bank and keep the communication channel open, which will give you a better idea as to how bank procedures going to affect you instead of depending on false information gained from nears and dears.
Sit calmly, plan your debt. Write down your all debts, how much for vendors, pending bills, pending rentals, etc. And everything. Write how much will be your monthly expenses for the upcoming months.
Mark a time in your mind, calculate how much you need to pay from your small income. So you can survive in this debt situation and also can eliminate some debts.
Calculate how many months do you need to get rid of your debts completely. Even if it looks unachievable, just visualise as it is not an impossible task.
Here the villain is not the money you lend for a business startup but the high-interest rates which make it hard to repay. By keeping this in mind, your first step should be to clear debts with high interest. Then clear that with lower interest.
By clearing that with the high-interest rate first, will not only lowers your pressure but also boost your confidence to deal with other smaller debts.
If you are feeling more than one debt is your main problem; then debt consolidation is the best alternative. So you can get relief from high-interest rates and concentrate on paying one loan altogether, like a personal loan instead of multiple credit cards.
Are you still feeling a little down? A financial advisor can help you. There are professional advisers for debt management, and you can get the best advice in the UAE. There are local private advisors also. You can choose the best way for you.
Stick to the plan, you can surely watch your progress and can achieve your much-awaited debt-free life. Give some time for yourself, plan and deal with it. Be happy.