Revive Your Cash Flow Through Debt Consolidation
Most small to medium-sized businesses have one thing in common – they struggle to keep up with their loan repayments. However, there is a solution to juggling several high-interest loans, and that solution is debt consolidation. In fact, the Federal Reserve’s Small Business Credit Survey found that approximately 25% of businesses applying for financing during the second half of 2016 did so in order to consolidate their existing debts and improve their cash flows. You can follow their examples.
How Can Debt Consolidation Help my Cash Flow?
Debt consolidation can lower your monthly loan principal repayments and loan interest payments. Basically, you end up with one loan with a lower interest rate, and possibly a longer term, instead of several loans with higher interest rates and shorter terms. Here are some more benefits of debt consolidation.
• Saves You Money – It’s much better to have one loan with a lower interest rate then multiple higher-interest-rate loans.
• Only One Creditor – Once you have consolidated your total loan debt into just one loan, you only need to interact with one creditor instead of many.
• No More Harassing Telephone Calls – If you are a small business owner with several outstanding loans, after debt consolidation your stress level won’t rise every time the phone rings.
• Gives you More Time to Pay – It’s often possible to choose a longer term for your new loan than the terms on your old loans. However, the best debt consolidation loans will take advantage of low-interest market trends without extending loan terms too significantly.
Picking the Best Debt Consolidation Option
If you think debt consolidation is a good idea for your business, talk to Vankeith Commercial Capital. We will help you become a savvy small-business owner who frees up some extra cash through debt consolidation. Contact us for more information.