You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Nerd Wallet spent 300 hours reviewing lenders, vetting their application processes and understanding their borrowing terms.We’ve highlighted their qualifications and rates so that you can accurately compare products based on your needs and goals.These types of loans are only beneficial when you can obtain a lower interest rate than what you are currently paying on your business debts combined.A debt consolidation loan is also beneficial when the term of the loan doesn’t extend beyond existing debt terms.The consolidation of several business units or several different companies into a larger organization.
Nearly a quarter of businesses that applied for funding during the second half of 2016 sought to refinance existing debt, according to the Federal Reserve’s Small Business Credit Survey released in 2017.
There are several debt-consolidation options for small businesses. As you review each statement, decide if it is debt that needs to be paid now or if it can be put off until later.
The three primary options involve acquiring a debt-consolidation loan, acquiring a small business loan or seeking commercial debt counseling. You may choose to consolidate some debts and not others, or you may wish to consolidate the total debt the business has. Obtain a debt-consolidation loan from a Small Business Association lender.
Consolidating at the right time can get you a great loan with lower interest, a better repayment schedule, a longer term, and possibly allow you to borrow more.
Consolidating at the wrong time can be a waste of energy, hurt your credit, or get you a bad loan that can hurt your ability to borrow in the future.