Effective debt management is crucial for the sustainability of a business. Here are some common strategies:
Debt Restructuring: Modifying the terms of existing debt to make it more manageable, such as extending the repayment period or reducing the interest rate. Refinancing: Replacing an old debt with a new one that has better terms, such as lower interest rates or longer repayment periods. Debt Consolidation: Combining multiple debts into a single loan, often with a lower interest rate, to simplify repayments and reduce overall costs. Budgeting: Implementing a strict budget to ensure that the company can meet its debt obligations without compromising other essential expenses.