A business should always have a clear picture of just what exactly it owes, especially when it comes to its business loans that are currently active. One of the ways to keep track of this is through making a list of all of the business’ debts, including bills that are unpaid, any fines the business might have incurred, credit card dues, and other financial aspects of the business that it owes. It pays to make sure that the loan part of the list is detailed, from how much the repayment value is, to when it should be paid, and how much balance does the business have left. Add up all of these remaining debts in order to see how much the business actually owes. While it may be a bit overwhelming seeing all of the bills that are needed to be paid, trust us, this way the business will get a reminder of what it does owe and knows what it needs to prioritize.

A business should always know what it can afford to pay towards its obligations. It should ensure that it should not overpay one obligation and leave another obligation or debt hanging in the balance and in danger of being forfeit or delayed. The business should always depend on its cash flow. The money that it is raking in, and also the money that it is shelling out. This means the business should always have an eye out on its budget and adhere to any strict or stiff budget plan that it should have. List every amount of income that it gets and subtract everything that comes out, making sure that everything stays in the business’ budget. The business should remember that it should maximize everything and ensure that it would have a bit of savings as well. There are various grants that the Australian Government gives especially during this pandemic, check out if the business is entitled to one. If a business has more money going out compared to what it is raking in, then it should be time to make hard choices. It should be time to choose what the business needs, or in other words: what the business cannot do without, or what the business wants, or in other terms: what the business can do without at the moment. Reduce and cut down on some expenses that you can identify can be adjusted. Always be realistic when it comes to handling the business budget, make it something that the business can actually stick to. Look for and find ways to save money in order to reduce the business’ spending.

A business should be able to work out and prioritize the debts that it should actually pay first. Some of these debts that should be included as the first debts to be paid can be: rent expense, mortgage expenses, corporate fees should the business have any, utility bill which include but are not limited to: electricity bills, transportation bills, water bills, gas bills, phone bills, and internet bills, loan repayments: may it be business loans, a business car loan, or any other loan that the business has. If somehow the business cannot keep up or are not on top of paying these bills, the business can request for financial assistance for other debts like credit cards, consumer leases, and even payday loans. Australia has a national debt helpline that can give the business a thorough guide that it can use in order to prioritize the debts that it has.