Financial freedom: Managing debt as a small business owner in Africa
July 27, 2020
According to MoneyFit.org, Financial freedom usually means having enough savings, investments, and cash on hand to afford the kind of life we want for ourselves and our families.
As a small business owner, your journey to financial freedom can start today if you pay close attention to and start cultivating a few habits. One of these habits is debt management, a lot of small businesses in Africa thrive on cycles of credit, it can be from restocking goods on credit to supplying goods on credit to other sellers or even loan from the banks or a MicroFinance institution.
The first step to managing debt is to track all of them, you should always form a habit of keeping records of credit transactions, those that owe you, and those you owe. This way you can better channel your resources towards proper debt recovery for those that owe you and debt repayment for people you owe.
This will save you from overspending and also increase your creditworthiness as you will be very accountable and in a position to offset your debts as at when due. JidiTrust provides you with tools to manage your day-to-day transactions and these include sales on credit. You can have a view of your business standing over time (in weeks, months, or in a year) using the application.