Not strange that the name was ordinary businessman in debt. Do not be ashamed to admit it. Debt can be a weapon in fact even for you to grow your business even to save your business.
But when you have debts, you should be able to manage your debt. Dealing with debt is not also mean dealing with the realm of law. There is a little list of major companies collapsed because in debt. You do not want to get on that list right.
Here’s a simple way to manage debt. By applying this method means you can at least maintain the quality of your business finances.
Before you decide take debt into account first if you are indeed in need of debt. No amount of costs to be your responsibility and your ability to meet these costs. Compare the cost of the debt with your income plan. Perform calculations also include realistic as possible with all the risks of your business plan on the debt.
Inventory of all debts
One mistake that often become a boomerang for an entrepreneur is to underestimate the numbers of debt. Talk about managing debt means also calculate how the total amount of your debt. You also need to sort out with costly debt and debt for a small fee, consumer debt and productive debt.
Maximize the benefits of debt
Debt you take a course to benefit you, whether it’s just to buy your needs or to capitalize on a business plan. One is certainly not to the benefit of the debt is less than the cost of debt, this could be disastrous. If this is already happened, find a way to cover the debt, may sell assets, pay the new debt that is lighter or seek solutions to improve the benefits.
Always make sure you secure financial ratios
The debt ratio is 50% of assets and 30% of revenues. Make sure this figure continues to awake and not shifted to larger numbers. Immediately take further action when the numbers leads to a critical point.