Debt consolidation for your business is something that you may have to face. The good news is that there are a few different ways that you can do it, depending on your business’s individual circumstances.
Borrow From A Bank
A typical bank loan is your best bet if you are consolidating several outstanding loans. Business term loans are often the best way to accomplish this. It is the simplest type of loan you can take, with easy-to-understand fees, rates, and terms. The problem is, the loan itself may be simple but acquiring one may not be. The more established your business’s finances are, the better your chances of getting approved. With high revenue and good business credit, you’ll be in a great position to get one. However, even with less than perfect credit or lower revenues, you may still be able to qualify.
SBA Loan
An SBA loan is another common way to handle debt consolidation. If you can get this type of loan, it comes with low rates. You don’t have to have a high business credit score in order to qualify. No one gets approved for an SBA loan unless their business plan is particularly strong, so keep this in mind before trying to obtain one.
Private Online Loans
Private online loans are also an option. A term loan can be quick and easy to get, with approval times generally taking only 24 hours after you apply. Once you are approved, you could have the money in a matter of days. Private loans are generally only granted to businesses that have been in operation for one or two years.
Personal Loans
Taking a personal loan can be another way to handle business debt consolidation. But you need to have a high credit score to get this loan. You must submit your own credit score rather than your business’s. Sometimes a personal loan requires you to have other forms of income in order to qualify. You’ll need a respectable credit score and income to get this type of loan.
For more information on debt consolidation for your business, please contact Spearing Capital & Consulting, Inc.