When Debt Feels Like a Ticking Clock: How One Business Owner Turned It Around
Chris Peden, CPA, CMA, CFM
I help small business owners grow their profits and cash flow and reduce their taxes by finding the holes in their financials and creating an action plan to plug them to create the business that funds their ideal life.
Lisa runs a boutique marketing agency.
Steady clients. Good team. Strong referrals.
But behind the scenes, her financials were telling a different story.
She’d borrowed heavily during a growth phase—expecting new deals to cover the cost. But when contracts didn’t renew and interest rates climbed, her monthly debt payments exploded. Cash was tight. Fixed costs were too high. Her debt-to-equity ratio? Off balance.
Every month, she was stressed.
Not just about making payroll—about staying in business at all.
The Wake-Up Call
Lisa applied for a small line of credit.
The bank said no.
That’s when it hit her: she wasn’t in control anymore. Debt was calling the shots.
What She Did Next
She didn’t panic.
She made a plan.
Here’s the exact roadmap Lisa followed to take back control:
1. Targeted High-Interest Debt First
Lisa listed out every loan she had—then ranked them by interest rate. She focused all extra cash on the most expensive ones. It wasn’t glamorous, but it worked.
This one move gave her more cash each month and helped stop the bleeding.
2. Refinanced What She Could
She worked with a CFO to put together a realistic repayment plan—then took it to her lenders.
She was honest about her numbers and confident in her strategy.
The result? Lower interest, longer repayment terms, and fewer sleepless nights.
3. Cut the Fat
Advertising tools she wasn’t using? Gone.
Overpriced office snacks? Cut.
Client gifts that didn’t drive ROI? Paused.
With a CFO’s help, Lisa trimmed the extras without hurting her core operations.
4. Rebalanced Her Capital Structure
She had too much debt and not enough equity support.
Together with her CFO, she restructured things so the business had more financial stability—and less dependence on short-term credit.
The Outcome
Within 12 months:
Now, she’s building a smarter, leaner business with stronger profit margins.
What About You?
If you're feeling buried by debt, you're not alone. But here’s the truth:
You can fix it.
Start by asking:
If the answer is “I’m not sure”—let’s talk.
We’ll walk through your numbers, assess your current situation, and make a plan that actually works.
Book a free consultation here: 👉 https://calendly.com/pedenaccounting/right-fit-meeting
Because if you aren’t making a profit—really, what’s the point?
Thanks for reading. If this helped, feel free to share it with another business owner who might need a little clarity today.
#ProfitMatters #DebtStrategy #SmallBusinessFinance #CFOHelp #SmartGrowth