If you are in debt, what is best the way out? If revenues become a problem, do you have to resort to loans to pay your debts? I think there is a need to review your income and expenditure pattern and see where you can cut down expenses instead of resorting to loans.

immediatelt sit down, and write down your expenses and incomes. You can then work out on whether if you save somewhere - you will save enough to keep your head above water. If not - then close down before it gets worse.

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Milly
www.goonj.info

Loans are a good way if you have a good business plan and success is easily seen in the company's future. There are some companies out there that have started out on loans and now they are making an incredible amount of money.

Whatever you do, try to avoid bankruptcy to handle your debt problems. This will continue to harm you for many, many years.
I'm sure bankruptcy has its place in very specific situations, but I would only consider it as an absolutely last resort.

My solution to debt is don't get into it

But seriously for small home businessed I recommend a revolving line of credit, just shop around for a good rate as you never know when you are going to need a quick injection of cash.

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If you are concerned about debt, you can reduce cash flows wherenever possible. You can also set a financial priorities and differentiate between what were your top priorities that you need most. And the most important is, you need to establish your monthly budget in order to manage cash flows.

I think the first step for me would be to document every bit of money going out and compare it to what's coming in. Then I'd trim down the spending budget to match what's coming in to keep myself from creating even more debt. I might have to make a few sacrifices here and there, but what doesn't kill me would make me stronger, right?

First, it's better to prevent having debts but if you really need to borrow a certain amount of money, make sure you take it as a real responsibility. Weeks or days before the deadline of payment, prepare the money so you won't panic.

Avoid being in debt. I agree with the posts around here that if you find you are running short of revenues, try to come up with a plan on how to increase it rather than ask for a loan. Some people may find their way out and be able to pay for their debt and save the business but a lot of people are not that lucky. Debts often cause them to lose their business leaving them empty-handed.