Ways in Which an E-Commerce Business Can Fight Debt

Read this article to know how an e-commerce business can fight debt. See the right strategy and planning an e-commerce business should take to keep debt off their books.

All e-commerce businesses take loans from financial institutions when they are starting. Whether they are going for the traditional loans or they prefer bootstrapping crowdfunding, or angel investments, they have to pay back the money at some point in time. Without having a capital, it is almost impossible for a business to stand. According to, 80% of the e-commerce businesses fail. Paying off the debts can be an extremely difficult and daunting task, and this is something that the e-commerce business owners cannot get out of easily. It is important to know about the various ways in which you can get out of the withstanding debts.

You can consider the ways that are mentioned below if you want to get out of all your debts as fast as possible.

Stop creating debt

When you already have withstanding debts to clear, it is important that you stop creating more debts. It is true that this is obviously not going to get you out of debt completely, but you can be assured that your debt is not going to get worse. When you keep adding debt every time you are actually trying to clear it, you are not going to make any progress at all. You should reduce the temptation of taking more loans for your business in order to clear the withstanding debts. It is not going to help because eventually, you will have to clear off that debt as well. Also, try to block or freeze your credit cards.

Increasing the monthly payments

Every month when you are clearing a certain portion of your debt, ensure that you are paying the maximum that you can. If you pay the minimum amount possible, it is obvious that it will take a lot of time to get the business out of debt. You can obviously pay minimum if you have devised a strategy for clearing up all the business debts.

Building emergency funds

It is true that the emergency funds can sound extremely counterintuitive when you are trying wholeheartedly to get the e-commerce business out of the debt, as you could have easily spent that money for clearing the debt, instead of opting to save it in an emergency fund. But the good part is that the emergency funds can prevent your business from creating debts, as it provides safety nets, which can be used when any crisis situation arises for your business.

Picking one debt and clearing it

Experts suggest that instead of trying to pay off all the debts by paying little money, the best thing that you can do as a business owner is target one particular debt, and give it almost everything that you have got. In this manner, you will be able to make noticeable signs of progress, and also reduce the debt amount with time. Making big repayments until the debt has been completely repaid is one of the best ideas to clear the debts fast. While you are targeting one particular debt, pay a minimum amount for the rest. Once the targeted debt is clear, target another one and clear that one. In this manner, you will see that you have repaid all your withstanding debts, and now you can make the business investments in order to make it stand out in the competitive market.

Asking creditors for low rates of interest

When you take traditional loans from banks or other financial institutions, the policies are going to be strict and stringent, and you cannot bargain with them to lower the rates of interest. However, if you decide to go to an angel investor, you can definitely pitch for low rates of interest. If you have a good debt repayment history, you can be assured that the interest rates will be considered. If you are using balance transfer for getting low-interest rates, you should pay the balance off, before the expiration of the promotional rate. After that, you will see that the balance is subject to higher rates of interest.

Looking for ways in which you can put more amount of money towards the debt

The more money that you are capable of putting towards the debt, the faster you will be capable of paying the complete debt off, and for good. If you do not have any, you should sit with your finance team and decide on a budget, which will allow you to manage money in a better manner. Furthermore, a budget plan also helps in figuring out as to how you can cut off a few expenses that are absolutely unnecessary, and how you can use that particular amount for clearing off your debt.

Settling with the creditors

Debt settlement is considered to be a good solution, especially if the accounts are already past due or your business owes more amount of money than what you are capable of repaying over all the years. When you are setting the debts, you have the option of asking the creditors to take a lump-sum payment, in order to satisfy the complete debt. Creditors who readily agree to the settlement offers easily agree to drop the remaining debt. However, they will only agree to these kinds of offers on the accounts that have the risks of defaulting associated. You can go through simple reviews on debt consolidation as well, for more details you can visit nationaldebtrelief.com or debtreviews.com.

Going through credit counselling

The management plans associated with managing debts, with the help of the counselling agencies last only for four or six years. However, you have the option of taking the lower rates of interest as well as the minimum payment, which they normally negotiate for paying off the credit card, by sending extra payments daily. This is referred to as the snowball method, which allows clearing the debt, but your counselling agency is going to manage the entire payment.


These methods are going to be absolutely perfect if you want to reduce or get out of business debt completely. Follow them and soon enough you will be able to make new investments for your e-commerce business.

Author Bio:
John Bell has been writing articles on Social Media, skilled business consultant and Financial Adviser for the last few years. In this post, he has written about the benefits of Social Media Marketing, Business, Finance as well as the features related to the same.


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