Mastering the Money Oars: Debt Management Tips for Entrepreneurs
Chosen theme: ‘Debt Management Tips for Entrepreneurs’. Welcome aboard a practical, no-drama playbook to tame debt without starving growth. Stick with us, share your questions in the comments, and subscribe for weekly founder-focused cash wisdom.
Map Your Debt Landscape Before You Steer
Build a Complete Debt Inventory
List every obligation: lender, balance, APR, fees, amortization schedule, maturity, collateral, covenants, and personal guarantees. Add monthly payment dates and auto-drafts. Share the sheet with your finance lead and update it weekly.
Separate Productive Debt From Problem Debt
Tag loans by purpose and payoff: equipment financing that boosts margin, versus revolving balances funding recurring losses. Productive debt should produce returns beyond its cost; problem debt steals optionality. Comment with your categories.
Calculate True Cost, Not Just the Sticker Rate
Compare APR including fees, origination points, prepayment penalties, and compounding frequency. Convert merchant cash advances to effective APRs. Understanding real cost prevents expensive quick fixes. Want a template? Subscribe for our plug-and-play sheet.
Prioritize Repayment With Methods That Match Your Business
Pay minimums on all debts, then direct surplus to the highest APR. This maximizes interest saved, protecting runway. Pair with a strict weekly cash review so working capital isn’t accidentally starved in tight weeks.
Prioritize Repayment With Methods That Match Your Business
Target the smallest balance first for a quick win, then roll freed cash to the next. Teams often execute better when they can celebrate progress. Share your first win story to encourage another founder.
Prioritize Repayment With Methods That Match Your Business
Prioritize debts whose payments spike during your seasonal lows or threaten covenant breaches. Stabilizing volatility can keep vendors cooperative and staff focused. Post your seasonality pattern and we’ll suggest sequencing ideas.
Choose the Right Financing Tool for the Job
Replace high-APR advances with lower-rate term loans, SBA options, or asset-based lines. Model covenants and draw schedules before signing. Sometimes a slightly higher rate beats restrictive covenants that choke flexibility.
Choose the Right Financing Tool for the Job
If payments are tightening, approach creditors early with data: 13-week forecast, reduction plan, and milestones. Request temporary interest-only periods or maturity extensions. Credibility grows when you communicate before you miss payments.
Personal guarantees can reach your home equity and savings. Cross-default clauses cascade a single miss across loans. Separate personal and business finances rigorously. Have questions on guarantees? Ask below; we’ll cover them in depth.
Protect Yourself: Guarantees, Liens, and Tax Implications
Grow While Deleveraging
Prioritize campaigns with payback under ninety days: paid pilots, preorders, partner bundles. Track LTV:CAC honestly. If payback slips, pause spending immediately. Which quick experiment worked for you? Share details for community feedback.
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