Effective management of long term debt is crucial for a business's financial health. Key strategies include:
Debt Servicing: Regularly making interest and principal payments to avoid default and maintain a good credit rating. Refinancing: Replacing existing debt with new debt on more favorable terms, such as lower interest rates or extended repayment periods. Covenants Compliance: Adhering to the terms and conditions set by lenders to avoid penalties or forced repayment.