How To Eliminate Bad Business Debt In Your Boynton Beach Small Business
“He knows not his own strength that hath not met adversity.” -Cesare Pavese
It’s true: many growing Boynton Beach companies need to take on some amount of debt to fund growth.
But debt at exorbitant interest rates is obviously “the wrong kind” of debt. And choosing the wrong kind of debt for your business (or having too much debt) can be a killer to your business’ lifespan and success.
So, what is the “wrong” kind of debt to amass in business?
The following would make the list:
* Credit card debt
* Car-dealership vehicle loans/leases
* Personal loans at high rates (including “debt aggregation” services)
* A high mortgage balance
But in reality, bad business debt should be thought of as any debt that is either not necessary — or which could be refinanced at terms which are more favorable.
To remove bad business debt from your Boynton Beach business, you must plan to systematically review every outstanding loan … and try to find a way to either pay it off (without compromising growth, of course), or refinance it at a lower rate.
It will take time to organize your debts and search for alternative options that are more attractive for your business, but it will pay off in the long run.
If you have expensive debt (such as credit card balances), you should work to determine what other financing options are available to your Boynton Beach business. If your company is profitable — or is showing strong signs of coming profitability — it’s likely that Boynton Beach lenders will work with you to refinance at a lower rate.
And a tip: don’t think of this as a “favor” they are doing for you.
Rather, think of it as good business for the lender. These financial companies are in business to make money from loans. If you bring a good credit history and a viable business record to them, they’ll seriously consider lending you money at better terms and getting you out of the unnecessarily high payments you’re making.
Doing so will make your company all the more profitable.
Feel very free to forward this article to a Boynton Beach business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Boynton Beach families and business owners. And we always make room for referrals from trusted sources like you.
Envision Life Consortium Inc