No entrepreneur wants to face financial uncertainty, but it can be a sad reality for many organizations across the world. While borrowing money from banks and investors canbe an essential aspect of managing a small company, it is possible for companies to accumulate far too much debt, which can lead to insolvency or bankruptcy.

If you want to eradicate financial problems that are weighing your organization down, read this advice on how to lead your business out of a crisis.

Take Control of Your Debt

Decreasing debt must become a primary goal for your business if you want to keep your head above water.

You’ll need to start by making a thorough list of all your debts to-date, which should include:

• Lines of credit
• Business loans
• Business credit cards
• Supplier debts

Once you have done so, you must organize them from the highest to the lowest interest rate. You’ll then need to make it your mission to repay the highest interest debts first. However, if you have any outstanding repayments that could damage a client relationship, pay these first to avoid losing custom and developing a bad reputation.

Review Your Budget

Budgeting mistakes could have led to your business racking up a huge amount of debt. Thankfully, you could improve your financial circumstances by overhauling your budget to decrease your outgoings.

It’s vital to factor in both your fixed and variable expenses, so you know exactly how much money is leaving your company each month. You also could lower your overheads by limiting employee expenses, comparing different business energy rates to find the best deal, and renegotiating on a rental agreement.

Sell, Sell, Sell

To quickly pay off your business debts and lead your company out of financial uncertainty, you must aim to raise as much money as possible. For example, if you have an overflow of inventory, slash its RRP to sell it to your target customers at a faster rate. It might be worth taking a loss on the inventory to quickly pay off debt and save money on its interest.

It might also help to increase the prices on products that frequently sell out, as there will be a demand for the items. You also could implement a customer referral scheme, granting every customer with a reward when they successfully refer your business to a friend.

Get Tough with Clients

Outstanding client repayments can place your business in financial jeopardy. While you shouldn’t be rude or unprofessional, you might need to become tougher with clients when it comes to unpaid invoices.

For example, if your business is struggling with multiple delayed payments, change the pay period terms for new clients. For example, rather than providing them with 90 or 60 days to pay, state they must make a repayment within 30 days.

It might also be helpful to reach out to clients to politely ask about a bill, which could have been easily missed during their pay cycle. If a client refuses to make a repayment, you might have no other choice but to hire debt recovery services to receive the sum.