[insert logo]

Five ways to keep your business debt under controlManaging your business debt can help you steer clear of financial trouble.

Piling up a lot of debt could leave your business in financial difficulty or, worse, bankrupt. Here are five ways that may help you manage debt and avoid a financial mess.

1. Understand your business situationIt’s important to keep track of your debt and the money owed to you by having a record of your creditors and debtors and the amounts involved. If tracking your business finances requires more than just a simple spreadsheet, you may want to consider using a bookkeeping system to make monitoring your finances more efficient.

2. Prioritise debt paymentsOnce you have a good understanding of where your business stands financially, you can prioritise your debts. This requires identifying which debts you must repay now and which ones you can put off paying or put on a payment plan. When prioritising, consider the urgency of the debts or the importance of the creditors to your business.

3. Negotiate with your creditorsIt may help to speak to your creditors about your business situation. You could ask if they have any hardship provisions or to have your due date extended. Talking to your creditors as early as possible could save you from paying more penalties and other charges. It may also be a good chance to negotiate for better terms and rates on your business loans.

lonsdalearticlehub.com | Five ways to keep your business debt under control | 1

4. Collect outstanding paymentsYou may want to collect payments from debtors to help improve your business cash flow. If you have a long list of debtors, you could prioritise them by going after the biggest accounts first.

5. Protect what’s importantThere are steps you can take to help protect your business from risks that can affect its ability to continue operating. Taking out a business insurance policy, for example, may help you by replacing lost income or maintaining cash flow. A financial adviser may be able to help you determine if business insurance might work for you.

[Practice name] is an Authorised Representative of Lonsdale Financial Group Ltd | ABN 76 006 637 225 | AFSL 246934 This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change. You should obtain a copy of the Product Disclosure Statement available from the product provider or your financial adviser and consider this before you acquire a financial product. This information and certain references, where indicated, are taken from sources believed to be accurate and correct. To the extent permitted by the Law, Lonsdale, its representatives, officers and employees accept no liability for any person that relies upon the information contained herein. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out.

lonsdalearticlehub.com | Five ways to keep your business debt under control | 2