Your business has accumulated multiple types of debts with varying amounts, interest rates, debt repayment schedules, and from different creditors. At some point, you feel like scheduling debt payments has already become big part of your routine and you don’t like that. You want your focus to be on your business, but you want to make use that your debts are properly managed.
One of the possible solutions to this type of business problem is debt consolidation. Basically, it is the process of combining multiple corporate debts into one account.
How can business debt consolidation help your company?
Dealing with only one creditor will help you schedule and manage your debt repayments better so you will have more time to spend on the more important things in your company.
If done properly, consolidating your debts could substantially reduce your interest rates and debt repayments.
It can also help your company improve its cash flow; thus, may result to a smoother business operation.
How to properly consolidate your business debt?
1. Gather all necessary information that have something to do with you commercial debt. It would be very helpful if you can create a summary of all your creditors, the money you owe them, the interest rates, the payment schedules, as well as your ability to pay. This would include your company’s monthly income and other expenses. If you are doing all the bookkeeping by yourself, you may want to enlist the help of an accountant to make sure you didn’t miss anything.
2. Review your debt summary. You might be surprised to find out that you are still paying for a debt that you have already completed. Check if there are unclaimed rebates for early payments.
3. Consult a debt counselor. Curadebt provides free consultation to business owners planning to consolidate their accounts. You will be surprised how much value a single phone call to a professional debt counselor can give to your business.
4. Draw up a debt consolidation plan using professional help. This would give you all your options that would determine how much money you will have to allocate for debt repayments and how long would it take you to repay everything.
5. Get a debt consolidation loan for businesses. With the help of a commercial debt counselor, you will find out which banks gives the lowest interest rates and which ones gives the longest term.
6. Strictly follow debt recovery plan and avoid unnecessary corporate spending. Don’t unnecessarily aggravate your situation by taking unnecessary new loans.
7. Evaluate your progress. If your company can already afford it, you may choose to increase your repayments to fast track your company’s recovery.
Related post: How Does Credit Consolidation Work?
Consolidating multiple debts can significantly improve your company’s financial vitality. However, doing it without proper care can end you up with more debt than when you started. If you are not sure whether your company can benefit from business debt consolidation, give us a call immediately. Get a free estimate on how much debt you can reduce by consolidating your debts now!