Debt consolidation or refinancing allows you to group all your loans or lines of credit in one single business loan.
Companies often have several loans running at the same time, for different purposes (equipment financing, growth financing, car loan, etc…). It can become quite hard to manage those loans and very expensive due to high interest rates or high monthly payments.
Debt consolidation for your company can be a good idea if you are in this situation.
The new loan generated by the debt consolidation will have a new interest rate and group your monthly payments in one. This payment is often lower than before, because of the lower interest rate and different duration.
Business debt consolidation helps you to manage your cash flow, improve your credit score and save money.
With debt consolidation, you can refinance almost any kind of business loan:
> Auto or car loan for your business
> Business credit card debt or line of credit
> Real estate loans
> Growth financing
The lender will define which loans he can regroup in the new debt consolidation loan.
Having multiple business loans to manage can be difficult and time consuming. The payment date, the rate and the loan conditions are different for each loan. Some payments get higher and higher over time.
Having a debt consolidation is a good solution to help you manage your money. It offers a lower rate than your current loans, with a single payment and a clear repayment schedule.
In the end, debt consolidation helps you save money and gives you more time to spend on your company
To be eligible for debt consolidation loans, your company needs to meet some criteria:
> Show 24 consecutive months of activity, at least
> $100,000 in revenue minimum
> Have a good credit history with your current loans.
Checking your eligibility for a business loan for debt consolidation will not affect your credit score.
> Current loan documents (contracts, statements …)
> Business Income tax returns
> Business Financial Statements (Balance sheet, income statement, cash-flow, bank statements)
> Business Plan
> Business Credit Report (lender may consult it with your authorization)
> Legal Documents (business licenses, etc.)
> The owner's credit score and credit report
If you own a small business, you probably know how complicated it is to get a business loan through traditional circuits. Through peer to peer lending however, some barrier to entry are suppressed. First of all, the requirements are lower investors being open to risk taking, and so securing a loan is easier, faster and cheaper. The process being entirely on line and very user friendly, it takes not more than 20 minutes to register on the platform, approximatively 48 hours to get accepted, and up to 3 weeks to receive the money. The interest rates are lower and usually no hidden fees added. Moreover, the online investors are welcoming for new borrowers as they are rather eager to support business owners, often locally.
CompareLend.com offers business owners a free, unbiased and immediate access to investors on peer-to-peer platforms. It helps business owners to choose the best financing opportunity from what the market has to offer. Getting financed is then easier, cheaper and faster.