Service your debts

- So you've gone and borrowed money for your business.…After all the hoops of paperwork and approvals…you have to jump through, you may think that…the hard work is done.…The money is in the bank, right?…Think again.…Paying back money is much harder, sorry.…As humans we tend to overestimate…positive outcomes and underestimate the negative ones,…and once your business owes money…it's important to be realistic…about how you're going to service that debt.…Step one is to setup a direct deposit…for the time when repayments fall due.…

You can always change it manually…but it's important to have the repayments…factored into your monthly expenses.…Also, having a separate line item…on your cash flow statement helps you see instantly…how your debt repayments fit into the big picture…of your company's financials.…Step two is to keep close track of your interest rates.…A late repayment may send the cost…of your debt skyrocketing.…Make sure that you're keeping an eye…on your repayment schedule, and that you're paying down…the principal as fast as you can.…