Consolidate Debt for Business Growth

Growing a business is hard work. As you grow, you’re likely to need to access various forms of funding from equity to trade finance to loans to credit cards. Business loans are a great way to finance your business whilst maintaining control of your business. However, over time many businesses find that they they’ve taken out numerous loans or finance options and ensuring that monthly repayments are made on time, to many different providers, can become time consuming and expensive. 

Debt consolidation is a good way to restructure or simplify your financial arrangements for your business. This will help you improve your cashflow and reduce costs. If your business has numerous loans with different banks, a number of credit cards and other monthly debts, you should consider consolidating these into one easy to understand, easy to manage finance arrangement.

 Why consolidate business debts?

The long and short of it is – it’ll save you time, money and probably a few grey hairs!

A single repayment

Many will become one. If you completely consolidate your debt, you’ll only need to worry about one repayment a month, to one provider at a single rate. You can then match the timing of the repayment to best suit the cashflow needs of your business.

Reduced costs

If you have different finance options with different providers, you’ll probably be paying administrative charges to each of them, overdraft fees to Barclays, credit card fees to Lloyds, the list goes on. You’re also more likely to be paying higher rates of interest thank you can get elsewhere.

If you’ve taken out short term loans to support cashflow at one point or another and haven’t repaid those quickly, you’ll be paying much higher rates than if you repaid it and replaced it with a longer-term lower rate of interest loan.

Choosing one finance provider and using them over an extended period of time will help you improve your credit score with the provider, likely resulting in lower rates on future borrowing.

Improve Cashflow

Longer term loans often have smaller, more manageable monthly repayments than short term loans at high rates. Reducing the monthly outgoings in your business, will help you grow other areas of your business.

Is a debt consolidation loan right for your business?

If you have managed to grow your business or improve your credit score since taking out the original debt, you may be able to get a larger loan, at a lower rate over a longer term.

Signs you might be ready to consolidate debt:

  • Your business has grown
  • Your personal credit score has improved
  • Your business credit score has improved

More reasons you might need a business loan.

What to consider?

Before choosing to consolidate your debts, you should make sure that it is definitely right for your business and your plans for the business.

Cashflow or cost?

Think about why you’re trying to consolidate the loan? Is it to improve monthly cashflow or cost of the finance?

Consolidation does not always mean cheaper finance. If you consolidate your debts into a single long term loan you might be reducing your monthly repayments, meaning more cash in the business, but the rates might be slightly higher, costing you more over all.

Fees

When taking out a consolidation loan you’re likely to be charged an arrangement fee at the start of the loan. Make sure that you’ve considered the cost of the fee and whether it is right for your business at the time.

Early redemption options

Always make sure that you’re aware about whether you’ll be allowed to repay the loan early, and whether you’ll be penalised for doing so.

Business Debt Consolidation at rebuildingsociety.com

We’ve worked with many businesses that have come to us to consolidate their existing debts. When you take a loan with rebuildingsociety.com we’ll work closely with you to ensure that he loan you’re considering is right for your business. At rebuildingsociety.com’s you can consolidate or refinance loans that you already have with us or consolidate debts you have elsewhere.

The Benefits of a consolidation loan with rebuildingsociety.com

  1. No early repayment charges
  2. 6-60 month loan terms to suit you
  3. Single arrangement fee – no monthly costs
  4. We’ll settle existing debts directly with other providers on your behalf

Regardless of the reason for your loan with us, you can be sure that we’ll always consider your business on its merits and work closely with you to ensure the finance is right for you and your business. You’ll speak to real people that understand business and finance.

How to prepare your business for a loan.

You can apply for a business consolidation loan on our platform in under 5 minutes. If you’d like to speak to one of our team first simply contact us on any of the below options.

Phone: 0333 303 0972

Email: apps@rebuildingsociety.com

It was a pleasure to work with the team as we felt they took a pro active approach to our request for funding rather than the current lending criteria by many of the banking institutions who operate via a tick box and computer system.
The dialogue between ourselves and the team at ReBS has always been convivial and the out comes were of a positive nature.
” – Gary – SME Business Owner

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