If your small business is struggling with carrying the burden of too much debt, you’re not alone. The
Small Business Administration
(SBA), reports that 30 percent of new business close in their first three years of business. Even more
striking is that over half of small businesses – 50 percent – fail within their first five years. Among the
reasons for a small business failing are insufficient capital and poor credit management. The good news is that
there is debt consolidation help that can save your business and to get mounting debt under control.
One approach to consider consolidating is your business debt.
Small
business debt consolidation works similarly to personal debt consolidation. You may be able to
consolidate your business loans into one payment either through obtaining a single loan to pay off those debts,
or by using a debt consolidation company to help you through the process.
When dealing with debt consolidation on your own, you will need to be comfortable in negotiating a small business
debt consolidation loan as well as organizing your payments to make sure that your previous creditors are paid
off. You should also be aware that there are two different types of small business consolidation loans
available:
secured loans (which would use business assets) and
unsecured loans (which don’t require collateral).
Secured Business Debt Consolidation Loans
Secured small business debt consolidation loans operate like traditional loans in that collateral is used to
ensure that the lender is paid back on the loan amount. If, for any reason, you were unable to make payments on
a secured loan, the bank or other financial institution would take possession of any equipment, property,
deposit accounts, or other business assets.
Secured business debt loans are available from the SBA as well as from most banks and financial institutions. The
SBA has
loan programs available to help small businesses. Be sure to read the
requirements as not every SBA loan can be used for debt consolidation.
Unsecured Business Debt Consolidation Loans
An unsecured small business debt consolidation loan doesn’t put any of these assets at risk, but generally comes
at a higher interest rate than its secure counterpart. So long as the credit history is good, a struggling
company can obtain an
unsecured business loan for use
in debt consolidation. Unsecured business debt loans are available from private lenders and alternative lenders
and may be easier to obtain depending on your business’s credit.
To learn more about your small business debt consolidation loan options, or about unsecured business loans, AmONE
can help. Our
free service works with you to help match your business to the highly rated small
business debt loans available for your company’s financial needs. You can fill out our simple
small
business debt consolidation solutions form or contact us today. You can
call AmONE toll-free
at 888-401-0330 to speak with one of our
knowledgeable financial search specialists. We’re here to provide debt consolidation help and answer your
questions Monday through Friday from 9:00 AM to 9:00 PM and on Saturday from 9:00 AM to 5:30 PM Eastern time.
