Commercial financeAfter your business declares bankruptcy, you likely never want to go through the process again. To ensure this does not occur and that your business stays out of debt, there are certain commercial finance strategies you can use. These include the following:

  • Eliminate unnecessary costs—One of the best commercial finance strategies your business can practice to avoid extreme debt is to identify areas where you can eliminate costs. For example, if your customers are not paying you on time, you may want to consider revamping your collection efforts. Or, if you have old equipment that your business never uses, you may want to sell it for extra funding. If this still isn’t enough, you may have to resort to eliminating employees from your staff.
    • Restructure your budget—If you find that your business continually gets deeper and deeper into debt, there may be a problem with your company’s budget. To eliminate this problem, make sure that your monthly revenues can cover your fixed monthly expenses, like payroll and rent. Then, dedicate a portion of your income to variable costs and devote what is left to expansion or paying off your debts.
  • Consolidate your loans—If your business has taken out several loans, you may want to consolidate them into one payment. By doing this, you may be able to reduce your monthly costs without negatively impacting your company’s credit.

If you need additional guidance regarding commercial finance and what you can do to keep your business’ debts manageable, contact us at Morgan & Partners Inc.