A. M. 
Dealing with debt in new small and medium-sized enterprises (SMEs) can be a significant challenge. First, it is crucial to conduct a thorough analysis of the company’s financial situation. This includes reviewing all revenues, expenses and liabilities to understand the size of the debt and how it is distributed among the different creditors. This clarity will allow prioritizing the most urgent debts and assessing the company’s ability to meet its obligations.
Also, the creation of a structured payment plan is essential. This plan should detail how debts will be settled, including a specific timetable and strategies to reduce unnecessary expenses. Renegotiating debt terms with creditors may be a viable option to obtain longer terms or lower interest rates, relieving short-term financial pressure.
In addition, improving cash flow is vital to keep the company operational while dealing with debt. This can be achieved by optimizing collection and invoicing processes, as well as reducing unnecessary inventories. Implementing rigorous expense control and seeking new sources of revenue can help improve liquidity.
It is also important to consider seeking professional advice. Consulting with a financial advisor or debt restructuring specialist can provide expert insight and recommendations specific to the company’s situation. This advice can help develop effective strategies for dealing with debt and avoiding costly mistakes.
Maintaining open and honest communication with creditors is essential. Informing them of the efforts the company is making to meet its obligations can facilitate renegotiation of terms and avoid potential penalties or legal action. In addition, building a good relationship with suppliers and other partners can offer greater flexibility in difficult times.
