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Key Tips On How To Lower Your Business Debt With These Helpful Tips


Key Tips On How To Lower Your Business Debt With These Helpful Tips

Having a business is extremely helpful as an extra source of income. Given the right business agenda, your venture can even be your primary source of income. That said, as with any business, debt is sometimes a natural part of your financial life.

However, just because debt may be in your entrepreneurial future, it doesn’t mean you can’t be a smarter business owner about it. Here are some key tips on how to lower your business debt.

Reminder: It’s Not Easy

Perhaps the best advice one can receive in these matters is that managing your business debt is not as easy as managing your personal debt. This is because there are more things that are put into scrutiny aside from your lifestyle in general.

However, the best tips in handling business debt are often the most simple ones. Here are some key tips that you can easily modify to fit your business:

  1. Budget Properly

You may already be aware of how helpful budgeting is to tackle your business debt, but it’s a different matter when you start budgeting your debt payments properly. You can start right away by doing the following:

  • Budget according to your business requirements: Check if your current debt payment plan follows your current business choice, or to your adjusted business habits. Try to check if there are some aspects of your current business that you can change in order to save more money to pay for debt.
  • Assess your schedule: Your budget plan may be able to pay off your loan within a certain timeframe, but is it something you can pursue consistently? You always have to take these things, as well as sudden expenses, into consideration.
  • Is your plan the only way?: Sometimes, the formulated budget plan may not be the best choice to budget your business debt. Through consulting with an expert, you may actually find better ways of managing your business debt.
  1. Increase the Amount, Or the Rate

Loans are typically set up for monthly payments, which means most debtors have a month’s time in order to earn the money needed to make the repayment. Interestingly, budgets are built around these monthly increments.

Some debtors try to make sure their budgets leave a little extra even when they pay for their debts. You can make this work for you. For instance:

  • You can start allocating more than your monthly payments in your business budget. This gives the illusion of having more to pay, and therefore would encourage you to save more.
  • Likewise, you can start diverting part of your savings to accommodate more payments. Any additional income you allot to pay your loan can shorten your debt and the time needed to pay for it.

You can also make your schedule revolve around multiple payments. This sometimes means accommodating the dates when you fix your business income as days you can pay some of your debt.

  • Making fortnightly or weekly payments, if possible, can make it gradually beneficial for you in the long run, as chances of accumulating interest can decrease.
  1. Don’t Skip, Negotiate

This advice should never be forgotten: never skip your payments. Even if you find yourself struggling to pay for you loan’s monthly requirement, there are always alternative options.

  • People tend to forget that it’s perfectly legal and safe to talk with financial providers and lenders. Sometimes, they can make leeways and extensions for you if you explain your situation.
  • Some creditors and lenders may even “forgive” some of your debt. This means they can reduce the total debt you have to pay.
  • Some may even lower the interest rates of your overall loan.

The key here is to not be afraid to try to negotiate terms with creditors. You are always free to explore your limitations as a debtor in order to fully understand just how much you have to pay and can save.


Being smarter with handling your business can be an extremely helpful way to reduce business debt. Companies like Oink Money are on your side when it comes to helping your business get out of debt quicker. If you apply these tips outside of your business, you can become a much smarter spender as well. These habits, when done continuously, can eventually not just lower your business debt, but maybe even remove it entirely.

Sarah Porter

Sarah Porter is a money-savvy writer and mum of two based in Manchester, UK. She is the Brand and Marketing Manager at the UK loan website Oink Money (, as well as the founder of a well-known money-saving website. Sarah is originally from Edinburgh where she studied Business and later worked in finance for a FTSE 100 company. She left her career in finance to pursue her passion for writing, a move which allowed her to travel the world with her laptop while running her blog.
Sarah has been writing about money, debt and marketing for the last 6 years and has contributed to a number of prominent finance and marketing blogs with many of her market-leading money saving tips. When she’s not working, she enjoys skiing, travelling and days out with the kids.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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