https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_8696ff19fd00a174ee9aab9fc7810653921e20057d72b17325aeb66a2cf551657b879c5e748d3480cc9379be55bed878b9a8802f6935958fcc061fd49c3e1f59.js
https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_50623f5be1cc3994ca23f13b8c3232da0a4a6c642cd37d7533b138d162a356da151f111fc90bb59d30fd2ebfe84aa30f8762c0bd402e3a61cacbf72760d4a23f.js
https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_a974bd4e6480297a069d5181728d595bafe302164377feddbbdb3da03517c235d76136a6bd56f55aba5f606d6d6d3e1a4c53b03c41f816067ad4995838495f94.js
https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_1ed3df173a5ac7d7855370950c4718f27351a3d059bbe679a9d85ad29a48dbcf157983a0e1bc9c7db89d817d357704878d31a6ddb581ef7463d2d7a6bbef7e25.js
Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) LinkedIn
    The Business TimeThe Business Time
    Subscribe
    • London
    • Business
    • Finance
    • Marketing
    • Technology
      • Auto
    • Education
    • Entertainment
    • Lifestyle
      • Travel
      • Food
    The Business TimeThe Business Time
    Home»Finance»How to Reduce Risk of Complex Debt and Protect your Business
    Finance

    How to Reduce Risk of Complex Debt and Protect your Business

    EditorBy EditorNovember 30, 2021No Comments3 Mins Read Finance
    Share
    Facebook Twitter LinkedIn Pinterest Email

    If you own or manage a business, chances are you’ve had a helping hand in the financial department at some point. Whether you’ve taken out a loan to cover the cost of renovating the office, paid for a mortgage on the business premises, or simply have a few company credit cards, it’s likely you’ve had to monitor and manage your business’s debts.

    You may hear the word “debt” and automatically think it’s a bad thing, especially for a business. However, a small amount of debt can actually be beneficial to a company. Low-level debt offers a business the opportunity to reinvest in its resources and operations. However, if your company has a large amount of debt, it can quickly begin to struggle, or even face insolvency.

    Here, we explore how you can reduce the risk of complex debt and protect your business.

    Table of Contents

    • How can debt be risky for businesses?
    • What are the riskiest debts for companies?
    • How to reduce the risk of complex debt and protect your business

    How can debt be risky for businesses?

    Taking on too much debt can cause problems for business owners, as it often hinders the company’s ability to produce a cash surplus. In addition, large amounts of debt may have a negative impact on investors who hold common stock in the business, as they will always be the last to claim payback from a company that has collapsed. They may be warier of getting involved with your business, as they will have a higher risk of loss, in comparison with investing in a company that has minor debts.

    What are the riskiest debts for companies?

    Corporate debt can be risky for businesses. It typically comes from commercial paper, short-term corporate debt that is a maximum of 270 days old, and bonds. Bonds are a kind of debt that enables a business to gain funds by promising investors they will receive repayment.

    Secured debt requires collateral, and those offering the loan typically expect this to be a large asset, such as a property or an expensive vehicle. These assets are used as security and can be sold or liquidated if the company does not pay off its debt within the agreed timescale. This can be a huge risk for business owners, as they could lose their business premises or other assets needed to keep the company running.

    How to reduce the risk of complex debt and protect your business

    Many businesses find themselves facing financial woes, so it’s essential you manage your credit and capital appropriately, to ensure your business can survive these ups and downs. There are certain measures you can take to recover debt and reduce the risk of making late payments.

    Set out clear payment plans and ensure you read the terms and conditions before accepting a loan. Once you’ve taken on a loan, set aside time regularly to assess your payments and make a note of any payment due dates. This will prevent your company from facing high-interest rates or even legal intervention. It would also be helpful to record any conversations, agreements or email communication surrounding your debts and loans.

    Business Business Management Finance
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleHow to Work From Home: The Complete Guide
    Next Article Short Term vs Long-Term Income Protection Insurance
    Editor

      Related Posts

      The Ultimate Guide to Branding in 2025

      June 12, 2025

      Mentorship: 3 Tips on How to Do It Right

      June 10, 2025

      Steps to Launching Your Own Software Company

      June 10, 2025
      Latest Post

      The Ultimate Guide to Branding in 2025

      June 12, 2025

      Mentorship: 3 Tips on How to Do It Right

      June 10, 2025

      Steps to Launching Your Own Software Company

      June 10, 2025

      Francisco Javier D’Agostino, cleared by OFAC, removed from U.S. sanctions list after no Maduro ties found

      June 9, 2025

      3 Simple Tips for Creating Buzz for Your Brand

      June 7, 2025

      Car Financing Advice for the Self-Employed

      June 7, 2025

      Take the Stress Out of Writing: Expert Paper Writing Services for Your Success

      May 20, 2025

      Products That have been Banned Because of Their Ingredients

      May 14, 2025

      How to Protect Critical and Fragile Infrastructure Using SCADA Cybersecurity

      May 14, 2025

      Protect Your Investment: The Benefits of Professional Upholstery Cleaning

      May 14, 2025
      About
      About

      Welcome to The Business Time – UK’s Leading Business Magazine. We are a UK-based business magazine that covers all trending and relevant business stories around UK.

      Facebook X (Twitter) LinkedIn
      Latest Post

      The Ultimate Guide to Branding in 2025

      June 12, 2025

      Mentorship: 3 Tips on How to Do It Right

      June 10, 2025

      Steps to Launching Your Own Software Company

      June 10, 2025
      Quick Links
      • London
      • Business
      • Finance
      • Marketing
      • Technology
        • Auto
      • Education
      • Entertainment
      • Lifestyle
        • Travel
        • Food
      © 2025 The Business Time.
      • About Us
      • Privacy Policy
      • Write for us
      • Contact us

      Type above and press Enter to search. Press Esc to cancel.

      We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
      Cookie settingsACCEPT
      Manage consent

      Privacy Overview

      This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
      Necessary
      Always Enabled
      Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
      CookieDurationDescription
      cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
      cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
      cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
      cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
      cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
      viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
      Functional
      Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
      Performance
      Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
      Analytics
      Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
      Advertisement
      Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
      Others
      Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
      SAVE & ACCEPT
      https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_2cbc0bded7ad31701db2d10684d00c8f3ca4f057eae1881978f8d66d1a8c6ae439d60213b645297a36ca792350523d0f4f7a997a7fd50a2239b8691ee0ea74c8.js
      https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_8248e7841862fa0d2de8dc18a21907f6b387d36fd7359f282382ccd5837c5a35281e12be1000ddff6bd54b47af35ee2344e941e51bbdd1a4f0b0004b66aa294c.js
      https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_b3445612f00e6a6f84a3fd3d59376d1b7fbb3031627415114f052e3d637eab6145cdc63e947e68492ca77d5d6d8e3bcc0827d269223f005b3fe1405e978f9ce0.js
      https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_22c361e44dde632dedaff2625f6631e2fb02ba3b6487097b48baa09f02cd81fd381ebb7d053f525e52e56655b1f8e2b89ddcc0a002e1b0c35c0a6920823641d7.js
      https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_4cf9cbd697a626e664443cdb20fad0eee1226995f637cf6e88715f76459de99fee684a9363324f9362be0f439c317e1cfdb7b0eaae09046b3dac3d8a48e600a5.js
      https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_ff091473f5de3037237c4a75a04fd03026c362a8690e43f9e8b4faa4b16c088ab9f42983965adde4c4a08c1a3de1c2b68b006824fb1cf8697a637f80adfe9305.js
      https://thebusinesstime.co.uk/wp-content/cache/breeze-minification/js/breeze_74120ddd3be549e5ab35c7d4b17d5b655b4e063d4720fbbfc400eb981775bc8c26eb61945936b581aaa07668da9fff1ae9a88b18307b51b00df0a7eafe456a95.js