What To Do When Your Small Business Is In Financial Trouble

small business financial trouble title loans

Starting a small business can be one of the most satisfying and financially rewarding decisions you will ever make. There are numerous benefits when you own a small business. You can choose a business idea that you are passionate about, make your own schedule, and potentially earn a lot of money. 

It is no surprise then that millions of Americans find the prospect of starting a small business appealing. With that said, starting a small business is not easy. You need money, passion, and a willingness to put in long hours. More than half of all small businesses fail within the first year and only 25% of them endure for 15 years or more. 

So how exactly do you create a successful small business? One important aspect is to know what to do when your small business is in financial trouble and you need money to stay afloat. Read these tips to figure out how to handle financial trouble when it comes to your small business. 

Cut Costs 

When your small business is in financial trouble and you need money to stay afloat, cutting costs should be the first step you take to save your business. This might seem like a painfully obvious tip, but a surprising number of small business owners don’t know how to properly cut costs while still providing their services. 

Discretionary Spending 

Perhaps the easiest way to cut spending when you need money is to cut all discretionary spending. Discretionary spending can take many forms, but in general it encompasses spending that is not critical to the health and solvency of your business. There are a few costs you should consider cutting when you need money due to financial trouble. 

• Work parties and lunches 
• Unnecessary new equipment and supplies 
• Nonessential maintenance 

Cutting out discretionary spending, while logical, can feel like a tough pill to swallow. While these types of expenses are not critical to the health of your business, they can boost morale and make your employees’ lives, and yours, better. 

However, when you are facing financial trouble and need money, these expenses must be the first to go. 


Downsizing is an incredibly difficult decision that nearly every head of a company must make at some point. For a small business owner, it is especially hard as small businesses are generally a tight knit group with relatively few employees. Downsizing can damage morale and can indeed hurt someone you are close to. 

Downsizing is not an easy choice to make, but it is one of the most effective ways to cut costs when you need money in the face of financial trouble. A full-time salary plus benefits is a huge expense, so cutting it out of your budget can dramatically help when you are facing financial trouble. 

If you are completely against the idea of laying off employees, you can offer a decrease in salary or a decrease in hours. While this is not ideal for the employee in question, it keeps them employed and helps you cut costs when you need money. 


When it comes to paying bills or purchasing new equipment or supplies, many small business owners don’t realize that it is possible to negotiate prices to spread out, or even lessen, their financial burden. 

Vendors and creditors that you rely on want your business – even if that means re-negotiating interest rates, payment terms, or prices. 

It is possible to negotiate with almost any person, business, or government agency that you owe money to. 

• The Internal Revenue Service 
• Vendors 
• Credit Companies/Banks 
• Landlords 

Unfortunately, there is no guarantee that any of these bodies will be willing to work with you. However, there is a high likelihood that some, if not all of them, will be willing to discuss changing the terms of payment. After all, they want your business to succeed because it will mean more business for their company. As such, they may be willing to enter into negotiations. 

Title Loans 

If you have cut discretionary spending, downsize, and re-negotiate terms with vendors, lenders, and the government, and still find that your small business is in financial trouble, you might want to take a riskier route to save your business. 

When you need money quickly, a title loan is a great option. By using your car as collateral, you could get a relatively high loan within a matter of hours. If for example, you live in Modesto, California, you can simply apply for a LoanMart title loan in Modesto, have your car inspected, and walk out with cash the same day. 

A title loan could help you get emergency cash to save your small business from financial trouble and get back on track quickly. 

Conclusion: Save Your Business 

It is a stressful time when your small business faces financial trouble and you need money to keep the company afloat. However, with the tips outlined above, you can save your business, escape financial trouble, and continue to enjoy the benefits of being your own boss

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