Additionally, many banks might not consider you unless you’ve been in business for at least two years, have a positive cash flow and a good to excellent credit history. That consolidation loan should offer a lower interest rate than you currently pay. To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.

Dividing Investments—What You Need to Know Before Finalizing Your Divorce

He further distinguished himself by earning the Certified Investment Management Analyst (CIMA®) designation from Yale University and becoming a Certified Financial Professional (CFP®). These credentials underscore his dedication to professional excellence and his unwavering commitment to guiding clients through their financial planning journeys. Outside of his professional endeavors, Pat cherishes time with his wife, Caitlin, and their children, Callan, Rory, and Hazel. He finds joy in coaching their teams, playing golf, and exploring new destinations around the globe. Pat’s passion for family, sports, and travel adds a vibrant dimension to his life, making him not only a trusted advisor but also a well-rounded individual. Reach out today for high-quality business debt management strategies.

Commercial real estate loans

A business debt consolidation loan helps you streamline all your existing business debts into one loan with one monthly payment. BHG Financial’s business debt consolidation loan terms extend up to 144 months, which is why it’s our best choice for borrowers who need more time to pay off their loans. Combined with its larger loan amounts and lack of a personal collateral requirement, this lender is set to be a solid pick for those who can qualify for its loans.

Businesses may get out of debt faster by making advanced loan payments. Reducing operating expenses, increasing product or service prices and collecting money for unpaid invoices are possible ways to raise cash for extra loan payments. Be aware that lenders may charge prepayment penalty fees on business loans if you repay them early.

• Reviewing your debt inventory will help you understand the extent of your business’s debt and identify areas where you can improve your debt management.
• However, most firms require far more substantial support to restructure liabilities and embark on a path to recovery.
• As a rule of thumb, you’ll want to gather offers from a handful of lenders before making your final decision.
• Upon her father’s retirement, Kelly joined the Hobart team and has since expanded her knowledge to included operations in addition to client service.
• Use your accounting software to run financial statements so you can understand how your levels of business debt affect your business.
• If your debt is overwhelming and you’re worried about falling behind on payments, it can be helpful to get advice from a neutral third party.
• Pat Schultz is an accomplished financial professional with a dynamic career spanning over two decades in various financial services organizations.

Use your accounting software to run financial statements so you can understand how your levels of business debt affect your business. If you’re not confident doing this yourself reach out to your business mentors and your accounting professional. Those who survive are able to do so by becoming slimmer and more frugal. In most cases, they also utilize one or more methods of small business debt relief. One entrepreneur raised $28,000 in startup funds by renting out her bedroom—and her couch—on AirBnB.

How to get a Fora Financial loan

Small business owners in North Dakota, South Dakota, Nevada and any U.S. territories are not eligible for Bluevine funding. These expenses could be higher than the interest you currently pay on loans. A business line of credit is similar to a credit card in that you obtain funds in your account and withdraw them as needed. A line of credit can be a flexible option, as it’s highly accessible.

Use a business loan calculator to estimate your loan costs and determine whether the new loan offers the true benefits of longer or lower payments that you need. Debt consolidation or refinancing doesn’t erase debt, but it can make it easier to pay it back, provided the new debt is less expensive or on better terms than the old debt. If you can refinance or consolidate with a new small business loan, such as a lower-rate line of credit or term loan, for example, you may be able to lower your monthly payments. Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees.

Business lines of credit

• Any company we affiliate with has been fully reviewed and selected for their quality of service or product.
• And make sure you’ve negotiated flexible repayment terms with your lenders, so if cash gets tight, your payments can adjust to a more manageable level.
• Debt consolidation or refinancing doesn’t erase debt, but it can make it easier to pay it back, provided the new debt is less expensive or on better terms than the old debt.
• Regardless of the type of loan, debt consolidation can be an effective way to simplify your monthly repayments and reduce the interest you’re paying on your debts.
• The key is to make sure this method doesn’t just free up maxed out lines of credit and get you in an even bigger hole.

This program ensures that enterprises can continue operations while addressing their financial challenges. If your business has multiple clients or sources of revenue, categorizing income and expenses by type can help you understand which parts of your business are the most profitable. Now I wake up knowing that I am paying off my debt, it’s like a weight lifted off my chest and I can breathe a bit more.

Neither references to third parties, nor the provision of any link imply an endorsement or association between The Hartford and the third party or non-Hartford site, respectively. The Hartford is not responsible for and makes no representation or warranty regarding the contents, completeness, accuracy or security of any material within this article or on such sites. Your use of information and access to such non-Hartford sites is at your own risk. Small Biz Ahead is a small business information blog site from The Hartford. Any company we affiliate with has been fully reviewed and selected for their quality of service or product. If you’re interested in learning specifically which companies we receive compensation from, you can check out our Affiliates Page.

Types of business debt consolidation financing

Reduce the pain in financing with streamlined applications, instant offers and approval rates that are 3.5X higher than industry averages. With Bench, you get a dedicated bookkeeper to complete your monthly books and powerful reporting software for a crystal clear view of your finances. Having solid books allows you to easily track how you are progressing along your goal of reducing your business debt. Do you know the cost of your raw materials, supplies, labor, office supplies, rent, car lease, transport, marketing, and everything else you spend money on to run your business? Becoming a pro at reducing your spending starts with having a razor sharp understanding of how much you’re currently spending.

Business debt restructuring is a powerful tool for companies facing financial distress. By leveraging effective strategies and when relevant seeking professional assistance, businesses business debt reduction can manage debt, restore cash flow, and focus on long-term success. You may also want a consolidated loan to make it easier to track and repay your business debts using a single payment. But beware that the new business loan could cost you more than your current loans if the new interest rate is higher than what you currently have. In other cases, you may need to negotiate a longer time to pay off debt you owe.

However, many small business owners who successfully emerge from restructuring find themselves back in serious financial trouble within a few years. This is because the bankruptcy process is highly detrimental to its participants’ credit scores. Debt consolidation loans pay off your original unsecured creditors and roll your obligations into a single monthly payment. This can be a major boon for a busy business owner who lacks the time or inclination to manage multiple monthly debt payments.