Page 12 - THE NOTICEBOARD EDITION 62 SEPTEMBER 2020

Page 12 September, 2020

HOW TO REDUCE BUSINESS DEBT

Continued from pg 11
strategy, you will likely need help
from a professional crunching
the numbers.

Ask Your Employees: You were
an employee at some point. You
know that the people on the
front lines will see things that
the managers may not. Your
employees know where money
is being wasted. Ask them. They
may be skittish about telling you
for fear of retaliation. Explain to
them why you're asking and
maybe offer a bonus to anybody when both parties feel respected
who helps the company save Bring on an Investor: If things are
and valued.
money. really bad, an investor can offer an
Reduce Staff: Nobody likes to injection of cash often in exchange
Be Tougher on Your Customers: reduce staff, but if your business for a piece of your company. In
Don't become that business fails, the reduction in staff will be general, avoiding this option is
owner that every customer hate much larger. Sometimes you have best since it involves signing away
but do insist that customers to make tough decisions that a portion of your future profits but
meet their payment terms. You if times are really tough, it's worth
negatively impact the few to
probably won't go to battle if considering. However, finding
protect the many. Are there
payment is a few days late but employees you could do without? investors is difficult. Don't wait too
when a couple of weeks go by, Could you consolidate positions long to start looking.
it's time to start calling the by paying one person more rather
customer to ask for payment. than paying benefits for two Bottom Line: Change what you can
control. You have far more control
employees?
If late paying customers are a big over your expenses than your
problem, you may want to add a profits. You can't make customers
Speak to a Credit Counselor: Most
late fee clause to agreements credit counselors are consumer- come through your doors but you
you have customers sign before based but some work with small can reduce costs. Concentrate on
you begin work for them. Check businesses. If you're having cost reduction and put that money
with your local professional trouble negotiating better terms, back into servicing your debt.
advisors to find out if there are a credit counselor might be able by Tim Parker
any laws that regulate what late to help.
fees you can charge. Good
business relationships happen
Hire a Debt Management
Company: Debt Management
companies come into your
business and sniff out where
y o u ' r e l o s i n g m o n e y
unnecessarily. They may be
expensive but worth it in the long-
run.