Article

How Business People Can Save to Pay Off Their Debts

Posted on: 21st Jan 2019

One of the very first lessons you learn before going into a business of any kind is that of the risks involved. The risk of doing business varies depending on the type of business you choose to go into. However, one thing seems to be quite consistent when doing just about any kind of business and that is the inevitable possibility of running into debts.

Nevertheless, for every problem, we like to think that if you search hard enough, there is always a solution lurking. So what is the panacea to this fiasco? How can businesspersons save to pay off their debts?

We are going to highlight a few ways business people can save up in order to be debt free and have their businesses continue to progress smoothly.

 

  1. Analyze Expenses and Cut Down where Necessary.

Of course one of the first and foremost ways to save is to first of all cut down on your business expenses. Analyze or audit, but just be sure to shave off all the unnecessary costs. What may seem small now, may be costing you a lot when summed together. Therefore, it is quite pertinent that for you to start saving, you must attempt to stop spending; at least on things you can do away with. This way you can redirect monies saved to paying off debts.

 

  1. Concentrate on Customer Retention and not Acquisition.

A lot of debt is incurred by business people when they attempt to acquire new clients. This can be quite expensive and in order to save up to pay off debts, a business should concentrate more on customer retention. That is to say, their focus should be directed at already existing or old clients, as it is far cheaper to get them to do business with you again than acquiring new clients. On the road to saving to pay off debts, this method will prove quite effective in doing so.

 

  1. Save Up by Making Good Investments Beforehand.

Good businesses make investments as a form of financial security. Investments made by business people should be such that it can generate interests that will serve as savings.  So that in cases where the business is in debt, there is a viable source to obtain money to pay up these debts.

At African Alliance, there is an investment scheme called the “Investment Plus Plan”. This investment category allows for a businessperson to earn up to 5% interest on savings. From as low as 5000 naira, businesspeople can begin to save up funds for the rainy day bearing two things in mind; the first is that they are entitled to an interest rate they most likely won’t get in commercial banks, in addition to the free life insurance cover that comes with this product. It is a package deal with a life cover up to the tune of 1 million naira. Note that you become eligible to request for policy loans as well which can also enable you to pay up debt.

The mere mention of debts can cause some people to immediately develop high blood pressure and this is because it can be quite an uncomfortable position to be in. It is even dicey and a bit more serious when it is a debt owed due to the cost of doing business. But with these few tips we’ve highlighted above, you should be one step closer to solving your debt problems.

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