6 Easy Ways to Reduce Business Debt

Reduce Business Debt - Complete Controller

Debt is an unfortunate part of life that almost every person has to deal with at one time or another. When it comes to small businesses, there is no exception. Virtually all new or established small business owners have to take on and deal with business debt. While likely, this debt does not have to cause a financial burden on you or your business if you follow these six easy ways to reduce your business debt. Check out America's Best Bookkeepers

Reduce Expenses

While reducing expenses may sound like a no-brainer, many business owners and staff allow expenses to get out of hand. Reducing business expenses is no different than what you might do to reduce expenses in your finances. As with any budget, you have to take a close look at where all your income goes. While there may be significant differences in what the company spends and what an individual might spend personally, how you handle your finances should be the same for reducing spending. If your budget is tight, consider cutting expenses that bring no value to the company operations.

Rework Your Budget

While having a budget is and should be a vital part of your company’s business plan, it is not something that you can prepare and leave. It needs to be reworked regularly when the business grows or finds shortfalls when it comes to spending versus profits. Revising your budget doesn’t have to be an overwhelming chore. It can be as simple as adding or removing line items or ensuring that expenses you eliminated are depicted on the current budget plan. It may help to look at your budget as a living, breathing thing to stress the importance of reworking as changes occur. Check out America's Best Bookkeepers

Pay with Cash on Hand

Just as with personal debt, business debt can often trace back to loans, the use of credit cards, and other sources of business finance that include long or short term payment plans and interest. If you find that your business is becoming buried in this type of debt, you should choose a period that you only use cash and profits on hand to cover expenses and payroll. Taking on more debt to pay debt can cause a cycle of debt that cannot be overcome.

Creditor Communication

While it is common for the small business owner to have financing that creates debt and creditors, some owners may not know the advantages of communicating with those who hold their debt. If your business is doing well and the debt you carry is under control and paid down quickly and steadily, nothing needs to be done when it comes to your creditors. However, suppose your business debt becomes overwhelming and seemingly insurmountable. In that case, many owners don’t know that by merely communicating with your creditors, you can get your debt reduced or, in some cases, even eliminated.


Debt consolidation is commonly used in both personal and business finances. It is a simple yet effective way to get debt under control or eliminated quickly. While it is not suggested to take on yet another loan, if your business credit is in good standing, you may qualify to get one lower interest rate loan to pay off all your debts, thus leaving you with one monthly, more controllable payment. If you don’t qualify for such a loan, you may be able to restructure a current loan to pay off other debts, or if you have a credit card with a lower interest rate and a limit that will cover your debt, you can create the single payment yourself. If attainable, debt consolidation is one of the most effective ways to get your business out of the red and into the black quickly. Check out America's Best Bookkeepers

Hire a Professional

Some professionals and firms were explicitly created to help individuals and businesses deal with debt consolidation or elimination. When choosing a professional, it is best to use an individual or firm with an excellent reputation. While hiring a professional will come with a fee, in some cases, the fee is a small price to pay to get your business out of debt.


Business debt is not uncommon and is nothing to be ashamed of or a cause for worry. However, if your business debt cannot be overcome by reducing expenses, reworking your budget, communication, and consolidation, or hiring a professional, there are other options you can consider, such as downsizing or selling your business.

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