Debt has a negative connotation. People tend to think that all debt is bad. This simply is not true. Debt is a useful tool that can help you make large purchases that are necessary that you’d otherwise not be able to make. Common forms of debt that help millions of people every year include mortgages, car loans, and invoices. These types of debt are not “bad” debts. They are useful in helping you grow your business. However, it can still be difficult to manage all your debt while running your business. Here are a few tips to help you manage your business debt:

• Categorize & Organize Debts: Managing debt is only possible when it is well organized. This allows you to quickly and easily identify how much debt you have You can then prioritize who to pay and when.

• Reduce Spending: Debt occurs because your expenses exceed your income. This may be because your inventory levels are too high, you have a rarely used company vehicle, or too many business decorations.

• Negotiate with Creditors: Talk with your creditors about getting lower interest rates, minimum payments, and an extended payment plan. This can save you money while making it easier to pay back your debt.

• Consolidate Your Debt: Having to keep track of and pay multiple creditors can make it challenging to pay back debt. Consolidating debt will give you single monthly payments and possibly lower interest rates.