Help Your Company Survive a Recession With a Business Debt Consolidation Loan

Have you ever wondered if what you know about business debt consolidation loan is accurate? Consider the following paragraphs and compare what you know to the latest info on business debt consolidation loan.

One way to consolidate business debt is by converting your short term debts into long term debts. Creditors are in business as well and aware that the times are tough and would be willing to extend your payment terms so you can keep your business moving as well as assure them that they get paid.

There is a way to prevent filing for bankruptcy. You have to consolidate your business debt and avoid bankruptcy, protect your personal and business assets. Your aim is to lower your monthly debt payments and decrease cash out and have more money to invest in your business until sales turn around.

The more authentic information about business debt consolidation loan you know, the more likely people are to consider you a business debt consolidation loan expert. Read on for even more business debt consolidation loan facts that you can share.

How do you consolidate business debt? There are several companies willing work with you to consolidate your debts. These companies take a look at your financial health and talk to your creditors to work out a plan to get your creditors paid and at the same time save your business. Your creditors surely want to be paid and your bankruptcy would mean loan repayment, thus they would agree to work out a repayment plan.


More often, life doesn't always turn out how you want it to be. Sometimes the challenge of running your own small business are too big for a single person and you need to turn to anyone who can help you. You've been working long hours to increase your sales but the effort may not be working. Time is firm but you have to meet payroll. You have resorted to your personal credit cards to meet payroll before but still not meeting your obligations.


Your business holds a future by consolidating your debt and lowering your debt payments until business improves. Nobody wants to go into bankruptcy. Get the assistance you need and keep your business afloat.


You can't predict when knowing something extra about business debt consolidation loan will come in handy. If you learned anything new about &keyword% in this article, you should file the article where you can find it again.

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Business Debt Consolidation - Avoid Bankruptcy the Smart Way

If you have even a passing interest in the topic of business debt consolidation, then you should take a look at the following information. This enlightening article presents some of the latest news on the subject of business debt consolidation.

As a business owner success is very important to you. You've invested time and money into your business to see success but now the debts are weighing down on you and you're looking for a way out.

But what do you do? Take out another loan? That is an option but is it a smart option?

By taking out more loans to pay off the previous ones is just going to get you into a more unfavourable financial situation.

The other alternative is business debt consolidation. But is that a smart option? It still involves taking out another loan, however, you will be pulling all of your expenses together under one low interest loan. Business debt consolidation firms can get the creditors off your back and maybe even bump off a few late fees. This may sound appealing but be cautious. There are A LOT of debt consolidation businesses scams out there.

The best time to learn about business debt consolidation is before you're in the thick of things. Wise readers will keep reading to earn some valuable business debt consolidation experience while it's still free.

Many business debt consolidation firms suck unsuspecting people in with their discounts, easy monthly payments and guaranteed results. However, when checking the BBB (Better Business Bureaus), the results were APPALLING!


Many customers were unsatisfied with their service, refused any refunds, being charged a 25 - 30% commission on their savings and generally coming off frustrated, stressed and financially worse than when they first signed up.


But surely not all business debt consolidation firms a scams right?


As I continued hearing all this bad talk about business debt consolidation I got curious as to wether or not there are some legitimate firms out there that do pull you out of the financial hole you're in.


I did manage to come across a company that has been with the BBB since 2000 and has maintained a perfectly clean record. This same company, which has thousands of happy customer feedback, can reduce your debts by 80% and protect your assets.


Hopefully the sections above have contributed to your understanding of business debt consolidation. Share your new understanding about business debt consolidation with others. They'll thank you for it.

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Business Debt Consolidation - Cash Flow is King?

The only way to keep up with the latest about business debt consolidation is to constantly stay on the lookout for new information. If you read everything you find about business debt consolidation, it won't take long for you to become an influential authority.

During these difficult times business owners search for any angle on how to reduce costs. Consolidating business debt into commercial mortgages can be a "clean" and relatively easy way to increase cash flow, but there is risk and a cost to do this.

Commercial mortgages, and other debt, such as lines, equipment loans, business credit cards, etc are often closely examined. Taking business credit card debt or short term equipment loans (that are often in around 7 year amortization schedules) and tying them into long term, 25 year or 30 year amortization schedules can have dramatic impact on cash flow, (It's not uncommon to see a 60% savings or more) but the borrower pays for this by paying higher interest amounts over the long term and reduces their wealth by using hard earned equity.

For example, I am currently working on an owner occupied facility in Arizona, it's a light industrial property and my client has been in business for 7 years. The building appraised for $1,800,000 and has a current mortgage of $850,000 with a monthly payment of $5,800 (25 year at 7%). He has over $300,000 of equipment and business credit card debt with a total monthly payment of $5,100 that is really hurting the company's profits. Total monthly payments between the mortgage and various debts equals $10,900.

The more authentic information about business debt consolidation you know, the more likely people are to consider you a business debt consolidation expert. Read on for even more business debt consolidation facts that you can share.

We are combining that debt into a 10 year fixed, 30 year amortization mortgage, the rate is 6.8% only .20% better than his existing, but the new payment will be $7,351 with a cash flow savings of $3,548 per month or $42,576 annual. Looks appealing, after all he will have the cost to refinance the debt "paid back" in 2 months and will enjoy the discounted payment for years to come. But, should he really do this? It's a tough call and one that only he can decide.


In his case, his business is really struggling and the cash flow savings will be a big relief both mentally and financially. Frankly, it's a matter of survival for him. He could use some of his personal savings to pay down the credit card and equipment debt but he is unwilling to do this. So in effect he is tying up $300,000 worth of equity, and reduces his net worth by the same, and increasing his long term aggregate interest payments - no free lunch. Though do to his situation, I can see and understand why he elected to go this route.


However, if his situation was different, and his business was more stable and making solid money I would recommend that he look at other options first, like paying down his debt the old fashion way - month by month. By down the business credit card first, then take those savings and apply them against the equipment loans. He could look at possibly taking on an equity partner or perhaps refinancing his existing debt but keeping it on the same amortization schedule and keeping the debt tied to the existing assets.


There's a lot to understand about business debt consolidation. We were able to provide you with some of the facts above, but there is still plenty more to write about in subsequent articles.

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