Ask financial experts about debt consolidation and you might get a mixed bag of answers. Some will say it is a good way to pay off a blend of unsecured debts with a single, monthly payment. Others will say that it “promises one thing but delivers another,” and that the thing it delivers is “too-good-to-be-true”. Though it is something offered to consumers, there are also debt consolidation options for businesses, and though it may seem as if taking such a loan will drop interest rates or offer lower and/or fixed monthly payments, there may be better solutions.
Why You May Want a Debt Consolidation Alternative
Rolling any unsecured debts into a debt consolidation package does not mean your new, cumulative interest rate is actually lower than the sum total of those in the individual debts. If you can get a guaranteed, fixed rate that remains lower than the existing debts, it may work out in your favor, but only if you can keep the business profitable afterward. Let’s not forget that a fixed loan also guarantees the business remains in debt for that longer period of time. Taking the loan to obtain lower payments typically ensures you will repay for that measurably longer span. Lastly, consolidation never translates to elimination – the debts always remain.
Finding a Solution
Financing is often the strongest tool for a business, and is a more appealing way to “get back on your feet”. Instead of taking the consolidation route, you will want to work with flexible business financing experts to see if a tailor-made solution will provide you with a far more appealing outcome.
Contact Value Capital Funding online or by phoning 800-944-6280 to explore their many commercial financing solutions. With unsecured lines of credit, small business loans and diversity of financing solutions, they can help you uncover an amenable solution to your business debt situation.