It’s no surprise that debt can be a drain on business. If you’ve taken out a business loan or have overspent on business credit cards, it’s important to prioritize reducing debt. Start by cutting down on or eliminating anything that isn’t essential to your daily operation. Maybe you have some professional memberships or magazine subscriptions that you rarely use—every little bit adds up.
When working on your budget, commit to paying a specific amount per month towards your debt and count that payment as a business expense. You can also speak with creditors to try and reduce your settlement amount, establish a payment plan, or extend a loan term to lower monthly payments. In the meantime, concentrate on maintaining a steady stream of work.