Small business guidance on how to recover from pandemic debt
Following a hectic and unpredictable year, things are finally turning the corner.
For business owners, this is an exciting time filled with opportunities to grow and build new goals. Yet, many businesses remain in recovery mode.
If you’re ready to turn the page to a new and prosperous chapter, read on for expert advice on how to overcome pandemic debt and get back into high gear.
Consider big financial changes
A powerful way to chip away at debt is to make it less expensive.
Refinancing a loan can be a savvy financial maneuver that can have a dramatic balancing effect to your books during this critical time. If you’re juggling multiple loans or just need a little breathing room, then a refinance can make an immediate impact.
Tap into free business resources
During the pandemic, businesses faced once-in-a-lifetime challenges that have not faded away. That’s why it’s important to lean on business resources to get back on track.
The Small Business Development Center and mentors with the volunteer group SCORE provide resources and mentorship. These one-stop shops are always in the know and up to date on PPP loans and other assistance. So make sure to stay plugged in by partnering with free business resources that have your back.
Scale back on expenses, increase opportunities
A top priority is paying down debt, which can be tough as resources dwindle. To create more opportunities, look for ways to carefully cutback on expenses and generate new ideas for boosting income.
Now is an ideal time to explore your business planning and look for fresh ideas that bring in new income. Another tactic is to renegotiate contracts to front-load some cash flow. In exchange, you can offer incentives to bring existing customers on board.
It’s also the ideal time to review your budget and make decisions that result in reducing or downsizing some items. Remember, the reductions can be temporary and fulfill an immediate need.
Set repayment deadline
Debt is a common denominator in any discussion about business recovery. As such, businesses must engage in multiple points of attack to get it under control.
A detailed repayment plan will put into plain view how much you’re paying and when it’s due. Look for interest rates, grace periods and action items related to federal assistance. When you do, you can strategically schedule your repayment plan and make greater headway at reducing debt faster.
We are here for you. We understand that your business needs are always changing, especially during this recovery period. Our mission is to help you maintain your business pace. This means you can do what you love the most and leave the details to us.
Contact us today with any questions.