Although there are several debt-consolidation avenues for small businesses, the three primary options are acquiring a debt-consolidation loan, acquiring a small business loan or seeking commercial debt counseling.
To begin, gather your credit, loan and bill statements. If you owe it, put it in the pile and total it all up. Make note of the rate, term, and payments. In the end, all debt is not equal. Some of your debt may be best left alone as opposed to taking a short term debt and turning it into a long term debt.
Categorize the debt, reviewing each statement to decide if it is debt that needs to be paid now or if it can be put off until later. Ultimately, you may choose to consolidate some and not all business debt. Using our Calculator , total up your debt and compare what you pay with an SBA 7(a) loan at 6%* adjustable for 10 years.
List all available loan options. Compare the interest rates, fees, terms and conditions of business debt-consolidation loan options, before deciding which is best for you.
Obtain a loan from a Small Business Association (SBA) lender. These types of loans are beneficial because you can obtain a lower interest rate than what you currently pay on your combined business debt. A debt consolidation loan is also beneficial when the term of the loan doesn’t extend beyond existing debt terms. .
Primarily, the same rules apply to both small business and debt-consolidation loans. Because of this, you can obtain a loan from either a private or commercial lender.
Commercial debt counseling will help you create a plan for paying off the business debt, whereby the debt counselor assigned to your business will help you carry out the plan. Ponte Investments offers a debt restructuring program unlike any other in case you are in default or delinquent. CLick HERE for more info
*Rate is based off the published prime rate as reported in the Wall Street Journal. Currently, Prime is 3.25 % and the margin for this rate is 2.75%. rates subject to change*