Small Business Debt Consolidation
Small business debt consolidation is the answer for many small companies. These businesses have tried credit cash advances and invoice factoring and still need help surviving in this crappy economy. It's not a cop-out, it's a way to make it through to better days. The advantage that small businesses with decent credit is that they may be able to get a secured loan from the bank to consolidate their outstanding debts.
There are many small business debt consolidation companies that can do all of the work for you as well. They will take all of your current debts into consideration and work with the creditors and banks to get you lowest monthly payment possible.
Also, any company with a strong accounting department can take care of this themselves.
Let's take a look at some of the advantages of small business debt consolidation and some things to watch out for.
Advantages of Small Business Debt Consolidation
Using a small business debt consolidation company to take care of your financial woes is an easy way to overcome your company's debt. They will examine your credit report and do all of the negotiation with the creditors and banks for you. If you are a very small business this can be a godsend. They will do all of the work and you will make a monthly payment directly to the consolidation company.
The most obvious advantage of small business debt consolidation is that it will get all of the creditors and banks off your back at once. As soon as the terms are negotiated the letters and phone calls will stop and you are on your way to having a debt free company.
If your company still has the credit score to get approved for a loan to take care of this on your own you will save money by doing it yourselves. The interest on the loan will be less than the fee that the small business debt consolidation company will charge, and there will be no blemish on your credit report from using a third party consolidator (more on that later).
Disadvantages of Small Business Debt Consolidation
As stated above, the small business debt consolidation companies will charge a fee that will most likely be greater than the interest on a loan to cover your debts. If you factor in the amount that a third party consolidator can reduce the debt by, it may work out to about the same. Research companies directly to see what their rates are, and what a rate on a loan would be to compare.
Also, the fact that you had to use a small business debt consolidation company will remain on your credit report for years to come. This means that your credit score may never recover as high as it could without it on there. That fact doesn't matter a bit if you are deciding between consolidation or shutting your doors, but for some it may.
Small Business Debt Consolidation
In most circumstances, debt consolidation is a great idea whether you hire someone to do it or take care of it yourselves. Small business is what powers our country and we need to have you around!
Take into consideration invoice factoring and credit cash advances before jumping into small business debt consolidation, or maybe a combination of these services is the key to keeping your business afloat.
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