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Using Debt Well as a Small Business

Debt can understandably be a scary word, especially knowing that extreme forms can potentially lead to bankruptcy. During this pandemic and the financial challenges that it has brought with it, debt may be impossible to avoid.  Before you start to feel hopeless, however, remember that there are two sides to every coin.  Believe it or not, leveraging debt is very possible and can actually be a useful tool to help grow your revenue. Here’s a 3 part how-to on making debt work for your small business.

Prioritize the Higher Interest Rates

The higher the interest rate, the more expensive your life will be. Take the world off your shoulders by putting most of your gross earnings into the higher interest rates first. Once that is paid off, move to the next highest interest rate and so on and so forth. This process is called The Debt Avalanche Method and can be applied to both personal and business accounting. Applying this method removes general costs allowing your business to focus money differently at an exponentially growing rate.

Make Reliable Investments

No one knows your business better than you do, so use that knowledge to make some reliable investments. Some key questions to help figure out where to start investing might be “What are my competitors doing?”, “What has and hasn’t worked for me?”, and “What tools haven’t I applied to my money-making formula yet?”. Once you have answers to those questions, where you take your credit may quickly be paid off.

You can also invest in the stock market. While times are currently turbulent, looking at potential avenues such as Margin Investments proves to be a welcoming resource to those who don’t have as much capital to start out. By borrowing money from brokerages in order to leverage positively rising trends, you can make money back and reinvest it in multiple ways. Be aware that this resource does pose it’s own risks but is worth exploring as a potential option.

Handle Taxes Quickly and Effectively

Taxes are the last thing business owners desire. Nothing ruins your day more than the negative numbers that the government throws at you. These following quick and painless steps can alleviate this stress in record time.

  1. As soon as you can, file your taxes, no matter what. Even if you can’t pay it right away, filing will show enough of an effort to keep the penalties away and avoid any illegal activity.
  2. Form a payment plan that makes sense and is attainable. In this step, if you’re unrealistic, you’re only going to make things worse. Figure out what is comfortable for your balance. If you need more time, file for an Installment Agreement. This is a tool provided by the IRS to give struggling business owners a chance to make things right.
  3. Seeking professional help is always recommended. Whether it’s for personal or company finances, hiring an accountant, a financial planner, or a debt relief business can strategically move you out of the financial burdens of taxes. Another benefit to this is that all payments to said professionals are tax deductible.

*Pro Tip: Reinvest your tax refund into something worthwhile so that your dollars get spent as wisely as possible. As tempting as it is to pocket the refund for personal use, why not put it into something that will grow right away? This move will allow you not to repeat the harmful cycles that come with debt.


There’s always finer print in the planning of leveraging debt. Whether it’s knocking out the higher interest rates, investing in something potentially lucrative, or approaching your taxes from a more informed angle, the balance of knowing when and how to cover costs is not an easy task. That’s where PCS Debt Relief comes in. The best way we can help is by assessing your needs. Call (636) 209-4481 for a free consultation on how we can make ‘debt’ a less scary word. 

PCS Debt Relief

About the Author:

At PCS, our programs are tailored to the client’s specific financial needs. What sets us apart from our competitors is that clients see relief, before any payment is received. Our NO UP-FRONT FEE policy ensures our client’s a 100% satisfaction guarantee. We also do not charge any monthly fees or any cancellation fees. We want the client to feel comfortable during the whole process that’s why we allow them to be part of it every step of the way.

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