Can Debt Consolidation Really Help Your Business?

Can Debt Consolidation Really Help Your Business?

For many small businesses, debt consolidation can be a tremendous boost, in terms of freeing up your company from numerous monthly payments which can have a highly negative impact on your cash flow. One of the primary benefits of debt consolidation is that many monthly payments can be combined into a single one, and that single payment often carries a lower interest rate than some of the individual payments did. It’s also much easier from an accounting standpoint, since you have one payment to send out every month, instead of some higher number of payments.

Businesses benefiting by debt consolidation

The kinds of small businesses which would typically benefit the most by debt consolidation are those which have incurred a number of debts during the startup period, and during the year or two following. With good money management from that point on, debt consolidation can be a huge benefit, both from the standpoint of simplifying your monthly accounting, and possibly also from the savings you realize on lower interest rates.

When debt consolidation will not help

As good as it sounds, debt consolidation will not work for every small business, and it’s just not the answer for every single company. Having acquired a number of outstanding debts and corresponding payments, debt consolidation will not help if you continue to take on additional debts after the consolidation process. The whole point of consolidating in the first place is to pay off all those debts originally acquired, and when new debts are taken on after consolidation, all the benefit will have been lost. This makes it extremely important for any company considering debt consolidation to firmly resolve to pay down the existing debt load, and to avoid taking on any new debts and payments.

Debt consolidation with ASA Capital Funding

If you’ve been thinking about debt consolidation for your small business, we may be able to assist you in meeting your consolidation objectives. Contact us at ASA Capital Funding today, so our debt consolidation specialist can explore options which may meet your needs.

Business Seminar

SHARE IT:

Related Posts

Leave a Reply

You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>