A client recently asked me what I think about the rising cost of debt, due to inflation. 📈

For me, there are four ways you can combat this.

The first is reducing your level of debt, which isn’t always a possibility.

The second is reducing asset intensity, which again, isn’t always an option.

You can also increase your hurdle rate for investments, but this is a riskier option if you can’t deliver what you promise.

Then, there’s my favourite option, tightening working capital. 

This is more achievable for most businesses if you carry out a deep-dive into your finances and implement some clear planning.