As a small business owner, you may find it necessary to take debt to get your business off the ground and even keep it running. Consequently, you may get pressure and headaches trying to manage the debts and pay them off. Over time, this can affect your business objectives, expenditure, and growth. Here are a few ways to manage your business debt to get it under control:

Consider Categorizing and Organizing Your Debts

First, you should plan the details of each debt that you owe. You can do this in a simple spreadsheet, paper, or pen. Also, while doing this, be specific about each debt and detailed information about it. You can include the remaining balance, interest rate, due date, creditor, payment method, type of credit, etc.

Doing this will make it easy to create a game plan and plan of attack for repaying the debts. Also, you will be in the know-how of why you took the debt and help you assess which of the expenses to reconsider moving forward. Ultimately, having a repayment game plan will help you manage to pay off your debts lest your lenders forward you to a collection agency for small business.

Identify The source of Your Business Debt Problem

It would be best to consider the source of your business’ debt issue. Do a critical assessment to determine whether you are in a position to take more debt. Or if it is unlikely for past expenses that caused the current deficit to arise again. Moreover, it will be easier for you to determine your solution when you know the cause of the debt problem and improve your business.

Reduce Expenditure and Increase Income

You need to manage your spending and ensure an increase in your income while making considerations of business debts. Reducing business expenses will leave you with extra funds to repay your debt, avoiding new debt. Additionally, increasing your revenue will give you more money for debt. This is also a good sign that your business is growing.

Moreover, take the following business strategies to help with your case:

  •         Cut all nonessential expenses
  •         Renegotiate all your contracts and prices
  •         Change your prices depending on your business structure and customer base
  •         Adjust to the demand for your products
  •         Improve your invoicing to minimize cash flow issues

Talk to Your Lenders

Reach out to your creditors if you feel like you may delay your debt obligations. Or even if you already have. This way, you will keep your debt situation manageable. Often, creditors will work with you when you are in a bind and communicate early about it.

In such a scenario, creditors may lower your interest rates and make temporary adjustments to your repayment requirements. Also, they may develop your debts into new debt, this time with better terms. However, you need first to understand how debt consolidation works.

Consider Professional Options 

If the above strategies are making no progress, consider working with a professional to get your debt problem under control. However, it would help to be careful about high fees or any promises that sound too good to be true. In the latter case, get a trusted advisor to review your plan.

Also, ensure that you have a debt management plan for personal debts that you may have invested into the business.


As a small business owner, you have a lot on your plate, and debt should not stall your growth. Use the tips above to stay on top of your debts and achieve your business goals.