In today’s tough economic climate, it’s not surprising that many Australian businesses have found themselves in debt. While credit is often needed to help tide businesses over from time to time, it can be notoriously tricky to get out of.

If you’re looking to dig your business out of debt, here you’ll discover some of the best ways to do it.

Start by being honest about your debts

While you may know your business is in debt, do you know exactly how much that debt is? If not, you’re going to need to sit down and write a list of all of the debts you owe. This can no doubt be a daunting process, but it’s only once you know how much debt you’re in, that you can figure out the best way to tackle it.

Once you have a full list of your debts, organise them into order of importance. Which ones are your priority debts? These are the ones which are going to need to be paid first.

Begin chasing up unpaid invoices

The majority of businesses tend to have unpaid invoices. Some clients and customers are notorious for paying late. While it’s to be expected to some extent, when you have debts to pay you can’t really afford to leave any invoices unpaid.

If you do have clients who consistently pay late, either consider replacing them or setting up new terms and conditions in which interest payments are owed for each day an invoice is late. This will definitely encourage much faster payments! You can then use the money from the unpaid invoices to pay off part of your debts.

Seek expert advice

Sometimes, the best way to tackle business debts, is to seek expert help from companies such as DWF. These professionals have years of experience helping Australian businesses dig their way out of debt. They will be able to assess your situation and help identify the best possible debt relief methods you can utilise to get out of it.

Switch to cheaper suppliers

Finally, if you’re wanting to start paying off your debts, you’re going to need additional money. You can potentially save money by switching to cheaper suppliers. The internet makes it easy to compare suppliers, whether it be energy suppliers or equipment and material suppliers, by comparing your options you could save a small fortune. Any money you do save can then be used to pay off more of the debt.

It can understandably be very stressful when your business owes a lot of debts. However, it is possible to dig your way out of it. The above are some of the best methods you can follow to reduce your debts today.