Assessing Your Financial Health as a Small Business
Small business owners have to learn many skills throughout bringing their idea to life. One part of the process involves assessing the financial health of the business. This is a critical step, as it will tell entrepreneurs how well their business is doing - and what...
Is Your Business’s Working Capital Management Efficient?
Businesses rely on working capital management to ensure that operations are running efficiently. In other words, companies rely on established cash flow methods to ensure that monthly goals are kept in line. Given the importance of capital management, it is essential...
What is Working Capital?
When staying on top of your business’s finances, it’s essential to have a good understanding of what working capital is. A simple definition of working capital is the difference between a company’s current assets and its current liabilities. Current assets include...
Managing Debt as an Entrepreneur
Becoming a successful entrepreneur is not without its challenges and risks. One of the biggest risks you can face as an entrepreneur is financial difficulty. The saying “you have to spend money to make money” is never more true when it comes to entrepreneurship. It is...
How to Create a Debt Restructuring Plan
Unfortunately, not all businesses are money-makers right from the start. Sometimes, a company will struggle to pay its debts - it’s a simple fact of life. However, the importance here is knowing when to seek help. When the debt burden becomes too much, there are many...
Pros and Cons of Debt Restructuring
Many individuals and businesses have had to face debt at some point in their history. It happens - a company takes out a loan, something goes wrong, and they can't pay it back as quickly as they should have. There are many different ways to handle this sort of debt,...
Key Financial Tips for Small Businesses
There are multiple reasons why 90 percent of startups fail within the first five years, and a lack of capital is near the top. One of the essential roles of a CEO is to make wise financial decisions. Here are some tips to keep in mind. The financial management of an...
How to Get Control of Your Small Business Debt
In debt? For most, that’s the last place you want your business to be, but it can happen to anyone. When you find your small business in unmanageable debt, it’s essential to not panic too fast and start looking for a solution. Bad management of your debts can lead to...
Examples of Debt Restructuring
By definition, debt is a deferred payment or series of payments that are given to a creditor by a debtor, distinguishing it from immediate purchases. Debt also carries interest, which varies by lender and type of debt. Most Americans are familiar with the process since 80% of Americans have debt to pay. Mortgages are the most common debt that Americans tend to carry, followed by balances on credit cards, car payments, and student loans. This holds true for companies as well as individuals. Businesses are also at risk of defaulting on a loan. Sometimes it gets to the point where a company or person is unable to consistently pay off all their debt on time. This is when debt restructuring comes into play.
The Benefits of Debt Restructuring
When you find the business you created from the ground up is at risk of closing its doors for good because of debt, it can be easy to feel utterly defeated. However, struggling with debt does not have to be the end of your business. Debt restructuring is a great way...