Managing Business Debt: Tips and Strategies from SCORE Expert

Small business owners 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 significance of understanding how to handle debt to ensure financial health and business success.

Debt management involves strategically handling outstanding debts to ensure timely repayment, which can help maintain cash flow stability for small businesses. However, if not managed properly, debt can pose risks such as financial strain and liability.

Ramirez highlighted the different 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, interest rates, repayment schedules, 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 to evaluate a company’s current debt situation. Stay tuned for more insights on managing debt effectively to ensure business sustainability and growth.