{"id":3576,"date":"2018-11-25T17:23:14","date_gmt":"2018-11-25T15:23:14","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=3576"},"modified":"2019-04-07T17:51:00","modified_gmt":"2019-04-07T14:51:00","slug":"how-to-best-manage-your-business-loan-repayments","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/how-to-best-manage-your-business-loan-repayments\/","title":{"rendered":"How to Best Manage Your Business Loan Repayments"},"content":{"rendered":"

You\u2019ve managed to get yourself a business loan. Go you!<\/span><\/p>\n

You may have thought that was the hard bit but what about the paying back part?
\nAh yes, that.<\/span><\/p>\n

That little part that you probably weren\u2019t thinking about too much at the time of getting your business loan.<\/p>\n

STOP that thought trail right there.<\/span><\/p>\n

Paying back your business loan doesn\u2019t have to be a nightmare.
\n<\/span>
\n<\/span>Armed with a business repayment plan you can much more easily manage business repayments – trust us, it\u2019s a doddle.<\/span><\/p>\n

Here, we\u2019ll take you through how to best manage your business repayments and better yet, remain financially stable in the process. Allow us to help you relieve that tension…<\/p>\n<\/p>\n

How to manage your loan repayments<\/span><\/h2>\n<\/p>\n

There are many things you can do to help manage business repayments and make sure your loan is being used and paid pack effectively. Here, we\u2019ll take you through our top tips!<\/span><\/p>\n

1. Time for an honest financial assessment<\/span><\/h3>\n

It doesn\u2019t matter what industry you\u2019re in, <\/span>every <\/span><\/i>business needs a budget. And there\u2019s no way you can figure that out without knowing your company’s financials inside out. <\/span>
\n<\/span>
\n<\/span>Deep-dive into your company and make a <\/span>very <\/span><\/i>honest financial assessment of the business. Figure out your working capital needs and make sure that you aren\u2019t spending your loan outside of the business\u2019s means.<\/span><\/p>\n

Knowing your company\u2019s budget will also help when deciding how big of a loan to take out in the first place. Resist the temptation to take out far more than you need – it may seem manageable now, but payments build up and could spiral out of control. With a carefully planned budget, there is no need to take more than you need. <\/span><\/p>\n<\/p>\n

2. Manage your cash flow <\/span><\/h3>\n

Cash flow management<\/span><\/a> directly ties in with your budget. After all, how do you expect to respond to cash shortages if you don’t know your cash flow?<\/span>
\n<\/span>
\n<\/span>Top tip<\/b>: Make sure you\u2019re using reliable software such as <\/span>Quickbooks <\/span><\/a>to monitor the cash flowing in and out of your business. <\/span>
\n<\/span>
\n<\/span>You certainly don\u2019t want to end up like <\/span>PPL Plaza<\/span><\/a> who missed a $67 million balloon payment on a property loan leading the loan into a default. That\u2019s a hard enough pill for a large company to swallow let alone a startup! Luckily, they were on good terms with their lender and were able to renegotiate the terms to avoid a default. <\/span><\/p>\n<\/p>\n

Make sure to never miss a payment to a lender. If you\u2019re struggling, try to minimize your expenditures where possible to cut your cash outflows. <\/span>
\n<\/span>Minimize expenditure by:<\/span><\/p>\n