How to Manage Debt in Your Business

Smart strategies to keep your finances healthy and your business thriving

Let’s face it—debt is part of doing business. Whether you're funding expansion, covering seasonal dips, or purchasing equipment, borrowing money can help move your business forward. But if not managed carefully, it can also cause serious financial strain.

If you’ve been feeling a little weighed down by business debt, don’t worry—you’re not alone. Here’s a straightforward guide to help you regain control and create a healthier financial future.

Know What You Owe

First things first: get clear on your numbers. List out all your current debts—credit cards, loans, lines of credit—and note:

• How much you owe

• What the interest rate is

• Your monthly payment

• The payment due date

Having everything in one place helps you see the full picture and identify what needs attention first.

Tackle High-Interest Debt First

If you’re juggling multiple debts, focus on the ones with the highest interest rates. These cost you the most over time and can snowball quickly. By making extra payments on these when you can, you’ll save money and reduce your financial stress faster.

Create a Repayment Plan That Works

Think of your debt repayment like a business strategy. Set goals, track progress, and build payments into your monthly budget. Struggling to keep up? Don’t wait until it’s a crisis—reach out to lenders early. They may be willing to renegotiate terms.

Avoid Using Debt as a Crutch

Credit is a useful tool—but it shouldn’t be the solution to ongoing cash flow problems. If you're constantly relying on debt to stay afloat, it might be time to revisit your business model or operating expenses. Focus on tightening up your budget and building a cash reserve.

Consider Consolidation

Sometimes, simplifying your debt is the smartest move. Consolidating multiple debts into one loan with a lower interest rate can make repayment more manageable. Just make sure you understand the terms and don’t end up in a worse spot.

Keep Credit Available—But Don’t Lean on It

A credit line can be a lifesaver in emergencies. But it’s not meant to fund your monthly overhead. Use credit wisely, and always have a plan to pay it off.

Monitor Your Financial Health

Make it a habit to check your business’s financial reports regularly. Keeping tabs on your debt-to-income ratio, profit margins, and cash flow gives you better insight into your operations—and makes it easier to catch issues before they grow.

Bottom Line

Debt can be a helpful tool, but only if you’re in control of it—not the other way around. With a clear plan, discipline, and regular check-ins, you can manage debt effectively and continue building a strong, successful business.

Need help navigating business finances or creating a debt reduction plan? At BRS Accounting Solutions, we help business owners like you make smart, confident financial decisions. Reach out—we’re here to help you move forward with clarity and control.