Putting up a business can be a huge gamble. You have to be very careful because you could lose the investment that you shelled out for it. Having a small business entails a huge responsibility. It can get a bit stressful - especially when you are just starting. That is also true when your business is currently in debt.

There are many ways for you to acquire small business debt. Unless you have a huge capital and cash reserve, the chances of your business incurring debt is not unlikely. Some entrepreneurs start out with a loan - having borrowed their start up money. Other companies have growing debts because their revenue is not enough to cover the overhead costs.

Regardless of how you acquired your debts, there are ways for you to get out of it. Just like there is consumer debt relief, small businesses can expect a couple of debt solutions to get out of their financial crisis.

Contrary to popular belief, businesses do not have bankruptcy as their sole option. Before you file for one, consider the other solutions that you can go for. Bankruptcy will make it very difficult for the entrepreneur to get financial aid in case they want to open another business. Since most small businesses are sole proprietorships, the bankruptcy taint will reflect on the personal financial records of the owner. The credit score of the business owner will suffer because of this. Even personal loans will be affected.

But before you choose your small business debt relief option, you need to conduct a business audit first. Just as you analyze the finances in consumer debt relief, you need to look at the asset, cash on hand, actual debt and the money that is needed to get out of your credit obligation. You may also have to look over your business model too. If you really want to salvage your company, you have to identify the problem. If that means revising certain operational procedures, then that may be what you have to do.

There are two debt relief options that can salvage your business. One is through debt management - but you forego hiring a debt counselor. Instead, you call your creditor directly to explain your financial situation. You try to work out a solution by either asking for a lower interest rate or a longer payment term. Both will allow you to make lower monthly payments that may be more feasible for your limited revenues.

Another option is debt consolidation loan. You can apply for one big loan that is big enough to cover your credit obligations from different institutions. If this is the course that you will take, make sure the loan has a lower interest rate than the average of your current debts. This will make your debt payments easier since you only have to think about one payment month on month. It allows you to focus on growing your revenues so you have more funds to allot to your debt payments.

It is important for you to be real about the cause of your mounting debts. If your revenue is really not enough to cover your expenses maybe your product or service is really not salable. If that is the case, you should reconsider your business concept. It might be time to invest your resources to another industry or product.

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