My business debt keeps growing, what should I do?
Direct answerGrowing debt usually comes from a business that spends more than it brings in, using expensive credit to cover day-to-day costs, prices that don't cover costs, and no clear view of the total owed. The first step is to list every debt with its amount, interest rate, and due date to see the real size of the problem.
How it shows up
You pay one bill and another shows up. Credit cards, overdrafts, and loans pile up, and it feels like you're never getting anywhere.
Most likely root causes
- Operating at a lossThe business spends more than it brings in every month, and the gap turns into debt.
- Expensive credit for daily costsOverdrafts and credit cards cover running expenses at high interest.
- Prices below costEach sale brings in less than it costs, so selling more only deepens the hole.
- Partial view of your debtYou don't know the total, the interest rates, or which debts are most urgent.
Quick self-check
- Do you know the total amount you owe?
- Do you use overdrafts or credit cards to pay monthly bills?
- Do you know whether the business brings in more than it spends?
- Do you know the interest rate on each debt?
If you answered yes to two or more, start with that cause.
First step today
List every business debt in a table with the creditor, amount, interest rate, and due date, leaving nothing out.
30-day plan
- Week 1: list all debts, identify those with the highest interest, and cut non-essential spending.
- Weeks 2 and 3: try to renegotiate the most expensive debts, review prices so every sale covers its costs, and stop using expensive credit for daily expenses.
- Week 4: track whether the business now brings in more than it spends and build a realistic repayment plan.
When to seek professional help
See an accountant or a local small-business support center as soon as possible if debt is already affecting your ability to pay basic bills. If the debt is large and there's a risk of legal collection, get legal advice.
Frequently asked questions
- Should I take out another loan to pay off my debts?
- Only if it replaces expensive debt with cheaper debt and the business can afford to repay it. Get advice first.
- Where should I start paying?
- Generally with the highest-interest debts or those with the most serious consequences, but review your situation with a professional.