Consolidating your small business debt can not only help you get the upper hand on finances as a business owner but also help you prepare your business for growth and expansion.
Debts are inevitable, especially for small businesses and, in fact, leverage is key to growing the business. Yet small businesses can easily be overwhelmed by various forms of personal debt and credit card debt, which can ultimately stagnate business growth.
So while debt is a normal and healthy part of your business, basic restructuring and consolidation can make your debt easier to manage. Debt consolidation involves paying several debts with very high interest (eg credit card debt, line of credit or personal loans).
When it comes to consolidating debt, there are several factors and elements to consider before moving forward. Here are some quick steps to take to maximize the bottom line for your business.
Gather the facts
Collect all of your accounts, credit, and loans to determine how much your business debt is.
Determine the debt
List and categorize your debt using a tool such as Excel or Spreadsheet. Do the analysis and decide if your debt should be paid off immediately or if you can postpone the payment later. Key factors to consider when studying your debt should include: interest rates, term of the debt, and monthly payments.
Explore Your Options: Determine What Is Best For Your Small Business
Research and shop around for the various options, interest rates, fees, terms and conditions of acceptable debt consolidation options that are most suitable for your small business.
Choose companies that specialize in small business lending and are supported by a team of Canadian finance, loan and small business experts.
Consider Loan Alternatives and Loans Online
Debt consolidation should not be a long, difficult or time-consuming process. Technological and financial innovations have made it possible to apply for a loan online and receive loan approval instantly as well as access funds as quickly as the business day after approval, so you can consolidate debt. of your small business right now.