Step-by-Step Guide to Small Business Debt Consolidation Planning
- July 29, 2020
- Written by : REIL Capital
Although small business owners have several ways for debt-consolidation, there are three primary avenues including acquiring a small business loan, acquiring a debt-consolidation loan, or simply going for commercial debt counseling.
Consolidation is a great way to save your money and stop paying interest on different loans. We are here with a step by step guide to help you plan a small business debt consolidation.Â
Start from gathering all your bills, loans, and credit statements. Write down all the amounts you owe along with the interest rates on each of these loans. Note down the rate, payment amount, and term for every loan. Every debt is different from one another and some of them are better left untouched. There is no point to turn a short term loan into a long term debt.Â
Put all those debts into categories of whether to pay them now or leave them for later. Ultimately, you will know that not all business debts need to be consolidated. Now, add all the debt and compare it to the 6% of an SBA 7(a) loan that can have a term of up to 10 years.
Now move to the available loan options. Get exact figures of how much interest rate you have to pay, what will be the fees, and what are the terms and conditions for a debt-consolidation loan. This should suit your desired loan requirements.
Get in touch with an SBA loan lender such as REIL Capital. These loans are beneficial since they have a lower interest rate. These would cost you very less than what you are currently paying on the combined debt. A debt consolidation loan is only successful when it significantly decreases the payable amount on existing loans.
With almost the same rules for both debt-consolidation loans and small business loans, you can get a loan from any lender. But the difference comes in terms and approval time. Get in touch with professionals at REIL Cap to make your loan process as smooth as possible.Â
Consider getting commercial debt counseling to create the best plan for paying off all your debt. There are professional debt counselors who can help you carry out a good plan and easily pay off all the debt.Â
Keeping all the transparency with our customers, we make sure that you are thoroughly informed about all the terms and conditions before disbursing the loan. All your existing debts will be paid on time and you will be left with a relatively smaller installment every month.
Debt consolidation has been a practice for years now. Borrowers had ways to get loans from multiple sources to pay one on time by starting another. Use this strategy if you are paying too much interest rate on your current loans.