Deal With Small Business Debt Now For Better Results

If you are spending sleepless nights jut by worrying about your business debt, then remember you are not the only one. Nearly 49% of the small business owners find it quite difficult to manage their business debt. 

With passing time, this has been a growing issue, which must be handled as soon as it gets out of hand. In fact, don’t wait for it to linger for long, as the more it stays the worst this scenario can turn into. 

Therefore, it is better to tackle these scenarios in the finest manner possible and no time to be sure. Handling debt can turn out to be the most difficult challenge for any group, and even for the small business owners.

Falling into bankruptcy

Whenever the businesses fail to repay the amount of time and the interest rate keeps on piling up, then they have no other option but to file for bankruptcy. This has been a generic condition for majority of ailing businesses. 

However, this has been a matter of past, as new laws these days have made it quite difficult to declare bankruptcy, just to be out of the piles. On the other hand, bankruptcy is not declared to be an easy way out as it calls for higher price. 

It can cost you thousands of dollars along with added attorney fees. Even that can hamper your credit scores, which means no loan from any financial institution later.

Dig out of the hole

There are some fortunate ways available, which can avert this danger of financial disaster for your small business growth. Some helpful tips are going to work wonder and help you control debt before it gets the chance to control you. 

The first stop has to be to do your homework. Want to know how? If so, then do not forget to check online for the details. Be rest assured to learn everything about the loan before you plunge right into it. 

This can determine the ways, in which you can pay the amount back later. Credit card consolidation loan is a smart way to deal with your debts when they are going out of control. So, check it out and learn about it when in need in order to make things go in your favor.

Calculate the debt ratio

The best way to work on this panel is by calculating the debt coverage related ratio. For that, you have to work hard in dividing the net operating income by principal payments and interest of debt. 

Majority of commercial banks always look for a ratio of 1.15 and anything above this rate. Those are considered optimal and can be handled well off easily. In case, the current ratio is lower than the 1 category or even 1, then it is time for you to boost your current cash flow.

Play it safe

For running a business, no matter how small it is, you have to convince the bank for larger loans. But, you have to play it quite safe. 

In case, the debt coverage ratio talks that the loan you are seeking is likely to be a stretch, then there are high chances that you will struggle while making payments for your loan. Try to consider these facts first before coming into any concluding point, right now.

4 Ways To Dig Out From Business Debt

It’s time to avoid bankruptcy and enjoy business growth in the more solvent manner possible. Lenders are currently tightening the reins on borrowers for everything, starting from health to materials. 

It is creating some trouble for the small business owners, as they are straining under the current weight of debt, growing right under their nose. A study has clearly stated that 8113 companies on a global basis were victims of bankruptcy. 

It is no doubt 57% increase from the last time such report has been taken. This automated access was a major part of the bankruptcy data along with the management company. 

Avoid bankruptcy as much as possible

You cannot deny the fact that bankruptcy is one small step towards salvaging a company. However, his move comes handy with steep price, which you have to pay for. 

The court filing fees along with the attorney ones can easily add up to around $10,000. Other than that, you have loan term damage, which is caused by bankruptcy to owner’s personal credit scores and business. 

So, you have to play the chords right and quite easily if you don’t want to mess it up all over again and work on small business bankruptcy in the easiest manner possible.

Some options to gather on

If you don’t want to fall within the same fate and don’t want your business to be a victim of bankruptcy, then there are certain points available for you to considerate. 

For the first step, try cutting on unnecessary costs and even trying to free up cash. You need to work on trying ways to identify parts of the said business, which got our company to debt on first place. 

In case, the customers are not paying right on time or if the expenses are too high to consider, then you might want to ramp up collection efforts and ditch some unwanted expenses, like costly phone systems or even office space, which is unwanted.

Check your budget again

In case you find out your debts to be piling up more than usual, then it is basically the current budget of your company, which isn’t working. 

 During such crisis situation, you are asked to create a budget, solely based on the present financial situation of your business. Always ensure that your business revenue will be able to cover more than just your fixed monthly costs, like utility bills or rent. 

After that, you have to allot a particular amount of your budget for covering variable costs like that of manufacturing materials. 

Prioritize the debts now

It is important for you to tackle the highest interest rates of your business first. That way you can ease down a bit on the repayment procedure and check out for the ones with lowest interest rates. 

It is important for you to check on the higher ones, as with time, the interest rates keeps on growing. So, the one with higher interest rate should be handled first. Checking out for credit card consolidation and going for it for your credit card debt issues is a smart move these days. It is effective and can lower your worries and trouble with ease.

Top 7 Ways To Teach Your Kids About Saving Money

I have two kids and my elder son loves saving money, I call him ‘The Little Banker’. He just loves to see his money (both coins and pounds) pile up in his fancy piggy bank. 

For him, it is quite exciting to empty his piggy bank and take the money to the credit union to receive a cash prize. It is watching his money pile grow and the attraction of receiving a prize that motivates my son to save. 

I know there are various others ways in which I can teach my kid to save money.

Money experts, around the world, are of the view that the first step is to make the savings fun. In addition, the kids should be taught to save money at an early stage. 

Then as the kids grow up, they should be made familiar to use more sophisticated ways. So, here are top 7 ways to teach your kids about saving money.

Show Them The Money

First and foremost, remember it is never too early to make your kids familiar with the finances. With online shopping, internet banking, and credit card payments, the kids don’t get to see the real notes and coins. 

If they somehow do, it is most of the times, money coming out of an ATM machine. So, it is important to start young and take some time out from your busy schedule to let the kids know that the bank takes care of the money you earn. You can even play shops and make sure you use real cash instead of plastic money.

Having A Piggy Bank

This is one of the most successful & used methods of teaching your kids the significance of saving money while giving the kids an easy and convenient way to do it. Tell your kids you have to fill their piggy banks with money. 

Exemplify that the piggy bank is for saving money for their future. A piggy bank will also help your kid to know the progress he/she is making. You can guide them to make creative piggy banks, just to make savings more interesting and fun.

Give Them Allowance

Try to make a habit of giving your kid a weekly allowance, this will help your kids to learn how to manage the money and also save towards a particular goal. 

You can choose to tie the allowance of the older kids to a particular task or assignment to understand the value of money and making them understand the value of money.

Set An Example

One of the best and the easiest things you can do is to make your kid see that you also love saving money. You can put some money in the jar while they are watching you and make sure you tell them it is your savings jar. 

This will help your kids to understand that saving is a normal thing. Besides, most of the kids want to be just like their parents, so seeing you save money will provide them valuable money lessons that will surely inspire them to save.

Adopt Real Life Experiences

If you want to teach your kid about money, teaching them with real life experiences will be a boon. You can take your kids along with you to the shopping malls or the grocery store. 

This is where you can teach them how to do the price comparison and little insight about inflation will surely come handy. If you are going to the ATM, you can tell your kids the whole process how to use the ATM machine and about the things they should keep in mind while using the machine.

Use Money Apps

If your kids have started using a smartphone, make sure you engage them in money skill apps, geared precisely for the kids. 

You can encourage your kids to download apps like GreenStreets. This is a game where the kids will get to learn important money saving & math skills including – earning money, setting goals, budgeting, saving & spending decision making. 

I am sure the kids will surely love this game as it is both educational and fun at the same time. You can also search for such related games.

Keep It Regular And Positive

Make sure you are not overstressing on how much your kid is actually saving on a monthly basis, especially in the initial stages. Appreciate the regular contributions no matter how small they are; this will teach your kids how to prioritise their personal finances.

Author Bio 

Sophia Jones tries to live her life like the sun – setting her sights high and vowing to always rise up again. Always game for an adventure, Sophia loves widening readers and her own expectations of our vast, beautiful world. As a journalist, Sophia writes to inform. As a creative writer, Sophia strives to inspire. Overall, she hopes to captivate. She currently writes for sites like followthesteps etc.

Tips to Save Money on an Outdoor Wedding

Considering an outdoor wedding? Whether you’re planning an event for yourself, or you’re hosting something for your children or other family members, you can save a lot of money by choosing an outdoor wedding rather than renting out a hall or event center. 

To me, outdoor weddings are the ultimate in beauty and romance, but they can be a little tricky to pull off—and that’s not just because of weather restrictions.

Here are some tips to help you save money and still have a beautiful memory that commemorates the special day. 

Consider acoustics.

Don’t forget to consider acoustics for your outdoor wedding. If you’re having a relatively small wedding (say, less than 80 people) in a more confined outdoor area, then chances are you won’t need any special audio equipment for the ceremony or for outdoor dinner toasts. 

If it’s a larger wedding, however, you may need to consider renting audio equipment. Although this might seem like an extra expense at first, it’s significantly cheaper than getting a live band or DJ, and will give you professional sound that your guests will love. 

Let the outdoors be your decor.

One major perk to planning an outdoor wedding is that you can have all kinds of beautiful, natural scenery at your disposal. 

Why not let this scenery take the spotlight by keeping your decor to a minimum? You may have all kinds of decor ideas in mind after seeing them on Pinterest—like that ornate floral chuppah or that extra intricate photobooth—but ask yourself first if those things are really necessary for your outdoor venue. In other words, try to take off some of the stress in wedding planning by letting the outdoors be your decor. 

This also helps you save significant money, as flowers and decor can be a major financial drain on the wedding budget. 

Research your wedding city.

Before making any commitments with any venues, you should definitely do some research on the place where you’d like to have your wedding. What is the climate generally like throughout the year? 

What are temperatures, rainfall, humidity, etc. like during the month you’re shooting for? Are mosquitoes or other bugs ever of concern during warmer weather months? 

These are things that you’ll want to know from the get-go to help inform the decisions you’ll be making down the road.

Make a plan for rain.

Even if you’re getting married in the desert, you absolutely must make a backup plan for rain. No matter how optimistic you may be about having nice weather on your wedding day, you simply never know. 

When making a plan for rain, you generally have two options. You may either rent a tent or choose to use the indoor parts of your venue. If you would rather go with the tent option, you may want to put down a deposit on a tent just in case. 

If you would rather use the indoor parts of your venue, be sure to go over the alternate floorplan with your venue coordinator. You may also want to keep a stash of umbrellas on hand in case they’d help your guests stay dry.

Make a plan for cold weather.

Even if you’re getting married in the spring, cold weather can be an issue as well. The good news is that you still can have an outdoor wedding when temperatures are somewhat chilly. 

First, you can rent a tent that features side flaps, keeping the side flaps rolled up until temperatures start to drop. In addition, you could work with your tent rental company to have space heaters set up with your tent. 

You might also consider offering your guests warm drinks, blankets, and/or hand warmers to keep them warm.

Make a plan for hot weather.

Hot weather, of course, can be uncomfortable for guests as well. Create a plan for shade if you think there will not be adequate shade at your wedding (such as renting a tent). 

You could also place large outdoor tables at the tables at your reception, and you might offer guests fans to use during the course of the day.

Don’t forget about power.

How is the access to power at your wedding location? Will you need generators to power up the lights, speakers, caterers’ appliances, etc.? 

Will it be possible to draw power from a nearby building? If you’re worried about power at all, consider having an electrician survey your setup for advice about your power needs.

Think about mosquitoes.

Ask the coordinator at your venue if mosquitoes are ever an issue with outdoor weddings. If so, plan to supply bug spray or to incorporate bug repellent candles in your decor. 

Keep in mind that even if mosquitoes aren’t usually an issue, they could become one if it has rained heavily in your wedding location during the week before your wedding.