Consolidating your loans into one payment allows you to reduce monthly costs without harming your credit. If your business requires small monthly installments, then the best-case scenario would be to consolidate several shorter-term loans into one long-term package.
There are times in your business when you secure financing for your business by having a short term business loan or unsecured business loan, that’s manageable based on your expected revenue. And for a while, business is going great. You're making your loan payments, still turning a profit but then everything changes unexpectedly, cash flow becomes tighter due to reduced/seasonal sales and it looks to affect your ability to pay your existing debt and suddenly your current debt repayment plan becomes totally overwhelming. In such circumstances, you may be able to benefit from consolidating your loans.
We at Konnect Financial, can certainly help you arrange loans to consolidate your existing loans to make life easier so that you can focus to get your business back on the growth curve.
Some advantages of consolidating your loans:
- Potential lower interest rate – Having one loan with one lender could provide a better rate of interest.
- Reduces Stress and Pressure – You don’t have to worry about dealing with multiple creditors, payments and deadlines.
- Improves organization - Allows you to be in control and keep a track of payments.
- Avoids damaging your credit rating - IVA’S and bankruptcy damage your credit rating consolidating doesn’t.
- Improving your credit record - When you consolidate your debt, creditors will be put on hold and your credit profile will start improving.
- Less change of making late payments - Fewer payments each month so your less likely to be late on payments.
Ultimately, the goal is to make your company's debt situation more manageable by reducing the amount of creditors you're dealing with as well as lowering the amount you pay daily or monthly. This allows you to start focusing back on what’s important in life and stop worry about debt.
Here at Konnect Financial we can help you consolidate your loans, give you control over your business finances again and improve your cash flow at the same time.
Give Konnect Financial a call at 0333 011 2208 or fill our contact us form or just send us an email at email@example.com to discuss this option for your business.