20th December: Are you planning to buy a house in the coming times but don’t know how much you should spend on it? Let us read this article to get an answer to this quite common query of people these days. 

21st December: Are you a small business owner struggling to bring down the ever increasing debt and need guidance on how to do so? Read on this article to find an answer to your problem.

Getting high debt can bring downfall of any business, whether small or big. And debt in a business can come from any of the sources including inventory, loans, equipment, non-paying customers and so on.

And piling up small business debt can make it difficult for the ability of the business to survive and keep growing. Hence, successful management of small business debt is indispensable to the success of your undertaking.

So, let us see how small business owners can minimize the problem of debt in their businesses—

•    Watch cash flow—A good way of keeping debts of small business under control is to keep a watch on cash flow in the company. A comparison of the inflow, i.e. the money coming into the business, with the outflow of cash is essential at regular time intervals, say, once in a month.

•    Rates of interest—You should have up-to-date knowledge of the interest rates on credit cards and loans for small businesses. If you find that your rate of loan is higher than the current rate, then you must explore options for refinancing to reduce your excessive payments towards interest.

•    Stick to minimum loan—More loans mean more interest payments. So, you must strive for borrowing the minimum loan that is needed by your small business for sustaining.

•    Negotiations with suppliers—Ask suppliers to give you good bulk discount and do not buy equipment or stocks on credit or net.

•    Defer payments—If you want to bring down the taxes paid by you, then you must talk with your clients for deferring end-of-the-year payments from them until the coming year.

•    Building—Make sure that the space you are having for your business is being utilized to its optimum capacity and is not lying unused. If any portion or part of the space is underutilized or unused, then consider subleasing it to any other undertaking or better relocate to a relatively smaller building.