As a business owner, you are consistently looking for ways to cut costs and increase your profit/loss margin. One way you can increase your margin percentage is to refinance or consolidate any business loans to lower your monthly payment or shorten the life of your loan.
Whether you refinance or consolidate your debt, you are taking out a new loan. Typically for refinancing, you are getting new terms and rates for a single business debt. However, your lender may be able to work with you to refinance multiple loans, but that is not a guarantee.
How does Business Debt Consolidation Work?
As you have established your business, you may have taken out several loans to help get your idea up and running. A business debt consolidation loan combines several business loans or even merchant cash advances and places them into one loan. You can work with your lender to determine if you qualify for a business consolidation loan at a lower interest rate, lower monthly payment, or a short repayment period.
Options for Your Business Debt Consolidation
For the best loan terms for your business debt consolidation, you may want to research loans backed by the U.S. Small Business Administration; these are commonly called SBA loans. SBA loans typically have a low-interest rate and flexible payment options, but you need an established business revenue history and a good credit score.
Another option is to seek out available loans with traditional lenders to consolidate your business debt. Various banks and credit unions could have competitive rates and repayment structures depending on your business history and personal finances.
Many banks and other financial institutions are online-only, so don’t forget online lenders are a possibility for your business debt consolidation. You may find that online lenders have less rigorous requirements for applying for a business consolidation loan.
BT84 Commercial Capital offers comprehensive debt consolidation solutions. Contact our offices today to learn more.