1. Increase revenue: The sole trader can look for ways to increase their sales and revenue to generate more cash flow that can be used to repay loans. This can be done by expanding their customer base, improving marketing strategies, or introducing new products or services.
2. Cut costs: The sole trader can find ways to reduce their expenses and minimize unnecessary spending in order to free up more funds to repay loans. This could involve negotiating better deals with suppliers, renegotiating lease agreements, or finding more cost-effective alternatives for certain business expenses.
3. Seek financial assistance or payment plans: If the sole trader is unable to repay the loans in full, they can approach their friends or lenders to discuss the possibility of extending the repayment period or setting up a payment plan that better fits their financial situation. This can help alleviate the pressure of immediate repayment and allow the sole trader to gradually repay the loans over a longer period of time.
Identify three possible actions a sole trader can repay loans from friends in business studies
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