If your business has multiple loans or other lines of credit such as overdrafts or credit cards, a debt consolidation loan can make it easier to manage your finances – and even reduce your monthly outgoings.
Over time, many businesses will end up with various forms of finance, often taken out to meet different needs. For example, credit cards to pay for day-to-day spending, overdrafts to manage seasonal cashflow issues, or short-term loans to purchase stock or new equipment.
While a combination of funding types and sources can help a business with its cashflow and working capital needs, this can result in it having to manage multiple repayments each month at varying interest rates. Some forms of debt, particularly shorter-term options, can be expensive, affecting the growth of the business.
One way to reduce the burden of managing and paying for multiple loans could be to restructure your business debt. By consolidating several debts into a single loan, your business would have just one repayment to make each month – and the rate could be more favourable too.
Debt consolidation loans
Debt consolidation simply involves taking out a new business loan to pay off your existing debts. With only repayment each month, rather than juggling several at different times, you can focus on what you do best – running your business.
Restructuring your debt will reduce the number of monthly repayments you have to make, saving you time and potentially money. Business loans, such as those offered by LendingCrowd, can have terms of up to five years, which means monthly repayments will be lower than shorter-term forms of finance.
Consolidating existing debts into a single business loan could also mean that you pay a lower interest rate, reducing the overall cost of finance. Restructuring your debt can therefore free up cash each month, enabling you to invest in the growth of your business.
SME loans at LendingCrowd
If you’re considering consolidating your debts, a business loan from LendingCrowd could help. We offer:
- Fixed monthly repayments of capital and interest
- An interest rate that is fixed at the start of the loan
- Up to five years to repay
- No fees for early settlement
- No fees for overpayments* to reduce the term and total interest paid
To find out how a LendingCrowd business loan could help you to restructure your debts, potentially saving you time and money, get in touch today.