This week in the Freedom Friday blog and email newsletter, we're continuing the series 10 Steps to Take Your Small Business to the Next Level. Today we're going to cover the tenth step in taking your small business to the next level, and that is to manage debts wisely. As a small business owner, it's important to identify any business debts, and manage them wisely. This includes debts owed by your small business, or debts that are owed to your small business by others. Many small businesses have taken out an EIDL loan from the Small Business Administration or received a PPP loan to help pay your employees or cover other expenses, and these loans need to be properly managed and paid off, just like any other business debt you may have as a small business owner. Your small business might also have other loans or credit cards which need to be taken care of by you as the small business owner.
If your small business owes any debts, you should make it a priority to pay those debts in order to avoid collection activity or litigation being filed against your small business (and possibly against you personally if you are a “guarantor” on a business loan). A “guarantor” is a person who has personally guaranteed a loan. This means if the business defaults on the loan, then the guarantor is personally responsible, and can be sued for the default on the loan. If you're having trouble paying debts or obligations, then you should consider hiring an attorney who can help you establish a repayment plan with your creditors.
At the same time, you need to pay attention to any receivables, which are monies owed to your small business by customers or other third parties. It is wise to make sure your customers or other third parties are current on making their payments, and to make sure that receivables on open accounts are not turning into collection issues. If you do have issues with receivables and/or collection items, it is best to consult with an attorney who can talk with you about what solutions might be available.
If you are interested in starting a small business anywhere in Oklahoma, or you are interested in taking your small business to the next level, please contact me at [email protected] to schedule a FREE strategy session.
For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/