Debt consolidation business consolidating loans
We asked Mihir Kroke of Able Lending when the right time to apply for debt consolidation was, and this was his reply:“There are two timelines to keep in mind when consolidating business loans.
Timeline #1 applies if you had good credit and took out a short term loan because you needed the quick-turnaround time of a short term loan provider.
Business credit cards are also likely your only option with 0% rates, even if they only last for the introductory period.
An SBA loan has harder qualification requirements to meet, but they’re typically the best option for debt larger than K.
As a small business owner, your personal financial health is just as important as your business’s financial health.
Consolidating at the right time can get you lower interest rates, better repayment schedules, and longer terms.
Consolidating at the wrong time can waste your time, damage your credit, or get you a bad loan that can hurt your ability to borrow in the future.
Keep in mind that your credit score improving by only a few points is not likely to qualify you for a better loan, because your increase needs to be significant.
Also, no matter how much your credit score improves, negative credit events like bankruptcies, tax liens, or repossessions can make qualifying for a small business debt consolidation loan nearly impossible.
A small business debt consolidation loan can lower your interest rates and reduce the size of your monthly payments.