Consolidating small business debt
That’s because you’ll likely be asked to personally guarantee any business consolidation loan.The lender needs to feel confident that if your business were unable to make the payments, you’d personally be able to step in and make those payments.In that case you would want to wait for three months of positive revenue trends before applying for a consolidation loan in order to increase your chances of approval.” In other words, unless you’re consolidating loans you took out for expediency’s sake, you should consolidate your business debt when you’re a better applicant for a loan than you used to be. Here are 5 signs it’s a good time to consolidate your business debt: If your personal credit score has significantly improved since you last borrowed money, then now might be a good time to consolidate your business debt.An improved credit score is an important qualification for lower interest rates and longer repayment terms.Smart Biz may be able to help you consolidate up to 0k in business debt with SBA financing.Their loans have low rates with ten year terms and monthly payments. Visit Smart Biz You’ll typically know if it’s the right time to consolidate your debt by events that improve your personal or business credit profile.Knowing when it’s the right time to consolidate business debt depends on the terms of your existing debt, your business’s current finances, and your personal credit.SBA loans will likely offer you the best rates and longest repayment terms of all business consolidation loan options.
Also, no matter how much your credit score improves, negative credit events like bankruptcies, tax liens, or repossessions can make qualifying for a small business debt consolidation loan nearly impossible.Below we look at what credit improvement milestones you need to make in order to potentially qualify for both an SBA loan and an alternative consolidation term loan.These are likely your two best options when looking to consolidate your debt.However, it’s an important skill to manage if you find yourself struggling with expensive debt, and checking your score is the first step.As a small business owner, your personal financial health is just as important as your business’s financial health.
Visit Smart Biz Showing an improvement in your business credit usually involves showing that you’re a more responsible borrower.