Are you struggling with debt?
It’s a real worry when debt levels are on the up, but cashflow levels are heading down.
We know the stress, uncertainty and pressure you can feel as the business owner. But it’s not all bad news. There are ways to overcome the debt and get things back on track.
The first step is to understand WHY you’re in debt.
Insufficient cashflow
A lack of cash is one of the biggest causes of out-of-control debt for many affected businesses. Unexpected expenses, delayed payments from customers and rising costs can all contribute to your negative cashflow position and inability to pay your debts.
Declining sales revenue
A drop in sales also means a drop in revenue. This can be due to increased competition, changing consumer preferences or economic downturns. With less money coming into the kitty, you lose the ability to meet your financial obligations.
Rising costs
Skyrocketing costs of raw materials, labour or energy can all have an impact. Higher costs and expenses eat into your profit margins, putting major strain on your cashflow and leaving you unable to cover your key outgoings.
Excessive short-term debt
High levels of debt, particularly short-term debt, will lead to high interest payments. These increasing interest rates make it difficult to meet your financial obligations, and also make it unlikely that lenders will offer further funding.
Poor management decisions
Some of the causes of debt, insolvency and financial distress come from macro, external conditions. These are out of your control. But poor strategic decisions, ineffective marketing and inadequate financial planning also play a significant part. We’re here to help you deal with rising debt
You don’t have to suffer in silence. If debt is keeping you awake at night, come and talk to us.
We’ll review your cash and debt positions to look for the best ways to get you back on track.
The ASBE also has a guide to small business debt. And you can also call the Small Business Debt Helpline on 1800 413 828 for confidential help and advice.
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