Whether you’re a brand-new business owner or have been in operation for a while, smart financial management is key to your continued success. Pay down your small business loan with these tips from Pango Financial.
Follow a Strict Budget
Paying off your loan should be a top priority within your business. Note the terms of your loan and make room in your budget for prompt repayments. If you’re having a hard time sticking to that budget, it may be time to tighten your belt elsewhere.
If you have trouble making ends meet while paying down your loan, consider other forms of financing. A 401(k) small business financing option allows you to use money you already have in your retirement account for business purposes.
Consolidate Your Debts
If you have multiple debts to pay off monthly or quarterly, talk to your lender about consolidating them. You may be able to get a lower interest rate if you pay one large sum instead of several smaller payments as those due dates approach.
Do you need more cash flow coming your way? Boost your business’s revenue and increase the amount of money you have available. Some ideas include:
- Extending business hours to encourage more traffic and customer engagement
- Offering additional products or services to increase sales
- Trying out a new marketing strategy to target different demographics
If you need more room in your budget for those loan repayments, decrease the amount of money you’re spending on non-essentials. For example, you could:
- Limit your hours of operation to slim down payroll spending
- Cancel marketing services or campaigns that aren’t serving you well
- Offer that catered office breakfast once a month instead of once a week
Paying down your small business loan can feel intimidating at times, but it helps to focus on one repayment at a time. Make diligent payments and track your business spending with these tips, and you’ll be satisfied when you see that remaining balance shrink.
Are you looking for alternative funding for your small business but don’t know where to start? Try our funding solutions tool and find an option that meets your business’s needs.