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