Fast and Easy Ways To Get Your Small Business Out of Debt

If you operate a business then you will know how difficult it can be to keep everything under control. You will also know that it is very easy for you to get into debt as well. After all, you may take out a loan so that you can move business premises or you may take out a loan so that you can upgrade and expand. The problem is that if things do take a turn for the worst and you can’t afford to pay off the debt that you have then you may find yourself in a bad situation.

Make More Money

This may sound obvious, but one way for you to pay off your debt faster would be for you to make more money. When you have business debt, you will understand that this is way more complicated when compared to having standard consumer debt. One way for you to pay off your debt fast would be for you to try and boost your earnings by having low-cost promotions. This could be a limited time sale or you could even sell off some of your inventory as well. If you do have a large inventory then this represents a lot of tied up money, so consider getting this sorted out until you can get out of debt. If you can’t do this then consider taking out a new loan so you can pay off your old, high-interest loan. Sites such as guarantor.loan are great for helping you out with situations like this.

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Don’t Stand for Late Payers

Late-paying customers are one of the reasons why so many people go out of business. Late payments can be really problematic so it helps to have a list of outstanding invoices. You can then have the contact information listed next to each one. Sure, some customers will refuse to pay until they are ready but when you keep track of everything it is very easy for you to get payments on time. Sometimes all you need to do is send out a polite notice, and this is the best way for you to make sure that your customers are aware that you need the payment. When your customers do pay late, you may be tempted to not declare this so you can pocket some extra cash. This is illegal, and it can land your business in more debt.

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Small Business Expenses

It can be very difficult for you to cut small business expenses because there is a high chance that you are spending money on things that you believe to be important. The problem is that you have reached the level of debt that you are at now because of your spending, so you need to go through all of your expenses while also being ruthless when it comes to your subscriptions and even your marketing tactics. This can really help you to get things back on track and you would be surprised at how easy it is for you to track all of your outgoings when you stay organised.

The Important Issues to Consider When Getting a Loan

Taking out a loan is something that you can do very easily and very quickly thanks to the internet. That wasn’t always the case, and this ease of access has its downsides as well as it’s advantages. However, you need to be fully informed if you’re going to make the correct decision regarding your borrowing needs.

There are plenty of important issues that you should be thinking about carefully before you decide once and for all whether you should take out a loan and which type of loan it should be. Read on to learn more.

The Length of the Term

Long term lengths are easy to slide into because they make the monthly repayments look more appealing. That’s because the cost is lower as a result of the payments being spread over a longer stretch of time. However, the debt will hang around your neck and weigh you down. It will also mean you spend more on interest payments than you would with a shorter term length.

The Rate of Interest

The rate of interest attached to your loan is perhaps the thing that you should be paying most attention to all to. If the rate is too high, you’ll end up paying more than you need to for the money you want to borrow. Variable rates are more risky, so be careful with those too because you don’t want to get stung by a bank rate rise.

Whether You Can Get a Better Deal at a Credit Union

Credit unions are really useful for anyone who has struggled to get loans from high street banks or big lenders. But they’re not just for those people. Credit unions can be used by anyone as long as you’re willing to abide by the rules. There are often great deals to be found on loans at credit unions, and you should most definitely try them out if you haven’t before.

Secured vs Unsecured

Should your loan be secured? Or should you opt for an unsecured line of credit. The stakes are higher when you’re taking out a secured loan rather than an unsecured loan. That’s because if you fail to pay, your security, which could be your home, will be taken off you. That’s a big risk so think carefully about it.

The Role of Your Credit Score

Finally, you’re going to need to think about the health of your credit score and how it’s going to impact what deal you’re capable of getting. With a poor credit score, you will not get good terms from a mainstream lender because they will be far more cautious about lending money to you. It might be worth trying to improve your credit score before taking out a loan.

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Don’t be the kind of person who borrows money too lightly without considering the options. Those people make mistakes that can sting for a long time to come. You need to be wiser than that, so give consideration to all the issues raised above.

How To Silence The Shopaholic Devil On Your Shoulder

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When it comes to saving money, all is fine and dandy until the latest sale email lands in your inbox, or you have to walk through the high street to catch your bus home from work. It seems that part of your brain reawakens that needs to constantly spend money and the mantra of “treat yourself, you deserve it” overtakes the rational part of your brain that is telling you that you only have a certain amount in your bank account left for the month. It can take more than a quick research into consolidate credit cards to gain the mentality you need to save enough money to clear any debt you have, and start to see growth in your savings accounts. Below are a few tips that will help to silence the devil on our shoulder everytime you walk past your favourite store.

Change Your Attitude Towards Money

It can be very easy after budgeting to see the money you have left over and think of it as “disposable”. Yes, the definition of disposable income is “money that can be chosen to be spent or saved by the owner”, but in this case, it is arguably more beneficial to go with the article definition of disposable: to be thrown away after use. If you begin to see your sudden splurges and impulse buys as money thrown away, you will be less likely to keep spending. Having a clear out can help to show you the impact that impulse buys can have on your consumerist attitudes. You will become aware how many purchases were only used a couple of times before they were forgotten about and replaced by a new purchase, and be reminded of things you already have. It can give you a new perspective on your buying habits, and maybe even help you to nip some in the bud.

Re-evaluate Your Budgeting System

It can be extremely easy to put the money away for bills, food, and petrol for the month and then just spend the money anywhere you see fit. However, if you start to budget an appropriate amount to put into savings it will become second nature to you, and before you know it, you’ll have a sizeable amount of money. Giving yourself no excuse to not put money away will prioritise your saving and potential future investments over new shoes or a handbag.

Question Every Purchase

A bargain isn’t always a way of saving money – it is still spending money, just less of it, and you save a lot more not spending any at all. Think about the purchase you are holding in your hand before you take it to the cashier. Is it something you actually need, or something you want? If it is something you want, put it back on the shelf and walk away. If you are still thinking about it a few days later, you may be able to justify purchasing it. Think about the amount it costs, versus the number of hours it took you to earn the money for it. If you would work the number of hours equal to the cost again just for the item, then it is a sensible purchase. If not, then the item is not worth it and will be collecting dust before you know it.

Hopefully, this has helped you to reevaluate your spending habits, and given you a new perspective on successfully saving money.