It is best you re-evaluate your position when you find yourself neck deep in business debt. It is easy to get sucked in to a debt trap when there are emergencies or unexpected fall in cash flow. You may feel to take advances from merchants or multiple loans, not considering the consequences of the higher rates of interest charged for these loans. To improve and grow in your business, it is better to refinance or consolidate your debt. You can find various sources for refinancing your business or consolidating the debt and choose wisely.
Consolidation Versus Refinancing
Refinancing your business can be suitable for you if you can find a loan with a lower rate of interest in order to pay off the original loan or debt. If you think on the other hand, you can combine all your loans to consolidate it including merchant cash advances. Many businessman take high interest loan that have bad credit. This results in loan stacking. In such a case, loan consolidation or refinancing is the best option. This way you can get clear off your business debt and continue with your business as well. To get a steady flow of cash you can avail many options but consider the points before deciding on any one.
Consider On Low Rates
If you have a strong business and still want to combine all your business loan into one, your primary concern should be the rate on which you have to borrow. Most low rates loans are government backed loans which is one of the most significant and beneficial factors. To avail such loans you must require strong business and credit. The paperwork is very long and tedious. The application process is deliberately made paperwork intensive and long just to make sure about the repayment. The tenure of such loans is very long and the funding time varies from one to several weeks.
Larger Business Need Fast Cash
If you want fast cash for your large business, which has at least three employees, one of them being you, then it will help you to cut down the cost of your loans with high interest. Apart from the minimum requirement of employees, your turnover must also be considerably high. Fast cash can give you the most competitive APR and also minimum loans for a small period ranging from one to four years. Though the rates of such fast cash can vary from minimum to quite high, it takes less than a week to get the money in hand, with which you can refinance your debt.
For Established Companies
If your business is quite established and you have less than three employees, then also there are options to ease up your cash flow. If you have a comparatively good credit score and your business has been running for at least two full years, then you can also get loans from market. In this case you do not need to have minimum revenue annually, even. You can click here to know more about such loans. As these funding take less time too. You can use it for debt refinancing, expansion of capital and various other purposes. So, now you see that even if you are having a tough time to get a steady cash flow, there are ways to mend it and not give up altogether.