As a small business owner, you may be juggling more than one payment. Whether a credit card debt, a short term loan, a merchant cash advance or all of the above, you find yourself falling somewhat behind. Here is where debt consolidation comes into play and maybe just the financing solution you need to get some cash flow going and pull yourself back up.
Debt consolidation takes your outstanding debt such as the aforementioned credit cards and any loans you might have and rolls them into one larger loan, thus leaving you responsible to only a single creditor. In this way, you're not having to remember to remit multiple payments each month, plus you may be eligible for a lower overall interest rate when all such debts are combined.
What You Should Consider Before Consolidating Your Debt
While certainly, this option could be a boon to your business especially if saddled with a good deal of debt, you do want to keep in mind the following:
- If you are currently managing your debts and are keeping on top of payments, then perhaps you don't need to go this route, as there are fees associated with debt consolidation.
- You don't necessarily have to consolidate all debt. Pick and choose. Approach your debt consolidation as strategically as possible.
- Look closely at terms. Yes, you may be getting a lower rate, but is it stretched out over too long a period? This could lead to you paying much more overall than anticipated.
- Are there early payment penalties? Again, you want to discuss all such terms carefully with whatever lender you choose to work with.
At First Union, we can help you to consolidate outstanding debt. With loans ranging from 5k to one million, we have the resources nationwide to help small businesses who might otherwise be struggling. Our goal is to see you grow. Call today and let's get started!