Managing Business Debt: Tips and Strategies from SCORE Expert

Small businesses in Chicago recently had the opportunity to learn about the importance of debt management in a webinar hosted by SCORE and presented by accounting expert Juliana Ramirez. Ramirez emphasized the crucial role that debt plays in business operations, highlighting the need for careful management to ensure financial health and growth.

Debt management, according to Ramirez, involves strategically handling outstanding debts to ensure timely repayment. She explained that while taking on debt may be necessary for business growth, it also comes with risks if not managed properly. By effectively managing debt, small businesses can maintain cash flow stability and avoid financial strain.

Ramirez also discussed the various types of business debt available to small and mid-sized businesses, including term loans, SBA loans, equipment financing loans, business credit cards, lines of credit, merchant cash advances, invoice financing, commercial mortgages, and microloans. Each type of debt has its own advantages and disadvantages, and business owners need to understand the terms and risks associated with each to make informed decisions.

In the next part of the series, Ramirez will delve into how debt can impact a business and provide steps for evaluating a company’s current debt situation. Stay tuned for more insights on managing debt effectively for business success.