Consolidating business debt
However, their APRs tend to be higher than other avenues you might be considering — between 10% and 28%.
Loan terms range from six months to four years, and you get your funding in as little as 10 days.
But since the repayment terms are short with these types of small business loans, they require large weekly or even daily repayments that cause severe stress to a company’s cash-flow.
Consolidation of business debt is the combining of multiple loans and debt obligations into a single loan.
While the increase in commercial debt slowed — and even declined — during the financial crisis, we’ve seen a steady increase in quarterly and year-over-year total U. With limited options available to small businesses, many relied on loans and other forms of debt financing to maintain cash-flow and handle other business needs.
For many business owners during the crisis, simply obtaining capital for their businesses was a challenge, let alone obtaining true bank-rate financing.
With a decrease in the availability of bank loans, many small business owners resorted to taking out loans from high-risk online lenders that offer easy availability to fast cash, but with very high interest and factor rates, along with a number of fees.
That might or might not involve a lower interest rate, but it is not, strictly speaking, refinancing.It’s not to be confused with refinancing a business loan, which is paying off of a higher-rate loan by getting a business loan with a lower-rate.The purpose of debt consolidation is to reduce the amount a company regularly pays to service their debt, by combining all debt into a single facility and thereby easing their short-term ability to pay back their commercial debt.Fortunately, as financial tech (aka fintech) services and other forms of online lending grow more prevalent, the marketplace is far more open than it once was.Here are a few options to consider if you need to consolidate business debt: If you own a larger small business, Fundation is probably your best bet, especially if you need quick cash.
You can get loans between $20,000 and $500,000, and the APR will run between 8% and 30%.