Many people who want to grow their business resort to a loan. In this regard, Javier Mori, Legal Manager of Equifax, shares some advice so that you learn to manage the debts of your enterprise, take note.
Check your credit score. It is important to consult the amount owed that you have with the bank to be able to make punctual payments and thus avoid interest.
Identify your ability to pay. Before going into debt, it is very important to know your ability to pay. This situation is directly related to his income level as an entrepreneur; which means that you must consider whether the income is fixed or variable to establish a reference point. Likewise, it is important to be aware of what you are willing to pay or cover when you obtain credit or a loan. By considering the above, you can implement payment strategies to cover what you are charged in advance.
Avoid going further into debt. A vital point to get out of a debt is not to take a new one. You should avoid all types of debt, no matter how small, such as the acquisition of unnecessary items, opening accounts, credit cards, among others.
Plan your payments and cut expenses. Use a calendar or digital bookkeeping option to keep your payment dates in mind. In the same way, if the site where you applied for your credit or loan allows it, make your advance payments whenever you can. Finally, do not forget to analyze your financial situation, in addition to making cuts in your expenses to get out of your debt as soon as possible. Remember that being disciplined so as not to spend on non-essential goods for your business is the starting point of any undertaking.
Create an emergency fund. Although it sounds like an impossible task, the truth is that an emergency fund will allow you greater flexibility and openness in the face of crises. This, also known as an accounting reserve, can help you cover unforeseen expenses and, in a similar case, pay part of your debt when your finances or numbers are not in good shape. Javier Mori from Equifax usually recommends accumulating between 2% and 5% of the net income for the period.
