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5 Providers of Debt Consolidation Services and Loans for Businesses

5 Providers of Debt Consolidation Services and Loans for Businesses

Business and entrepreneurship in particular is among the riskiest endeavors you will ever take. Most of the time, you find that you have a unique business idea and a ready market. Things look up and to generate more revenue, you may choose to use your business credit card or take up a few loans just to finance and to build your business.

Unfortunately, there is an economic crisis, and you are unable to repay your loans and your sales drop. What do you do then? File for bankruptcy? Of course, this is the first idea that will cross your mind, but it may not be the best way out for you.

There is a better alternative – debt consolidation.

Debt consolidation refers to the putting together all your existing loans and credit card debts into one. Basically, you will take up a loan to repay your loan, now consolidated into one unit with a lower interest rate. The one big loan taken up pays off all your existing loans and credit debts and you will have one loan to service.

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Your business is eligible for debt consolidation if you have several creditors breathing on your accountant’s neck monthly and when you need a better system of repaying all your creditors.

The first step is to determine the amount you owe against the amount you have or what you can afford to repay monthly. Choose a plan[1] that will work well for your business. After that, you should find a company or a reliable debt consolidation service provider. There are various service providers, but the main ones include:

1. Online debt consolidation companies/peer-to-peer lenders

There are many of these nowadays and you may be stuck on which company to choose, especially when inexperienced. As a rule of thumb, research, review, and ask, even though online businesses have debt consolidation loans[2] made easy. Your financial counsellors, colleagues, or acquaintances will guide you in the right direction. Some of the leading online debt consolidation loan companies include:

  1. LendingClub: This is one of the nation’s biggest peer-to-peer lenders. If your business’ credit score is strong, then you will enjoy debt consolidation services at low interest rates from this online entity. Their rates are easy to understand and calculate because all the necessary items are described clearly. The LendingClub has been accredited and you can trust them to care for your business needs.
  2. SmartBiz: If you consider your business strong before and after going into debt, then you should consider talking to this company. Their rates are among the lowest for your loan if it is government backed. On the down side, their application process is intensive, and you will have to need a strong or excellent credit score.
  3. Funding Circle: If your established business is in financial crisis, with many debts and constant calls from your creditors, then you may consider contacting this company. You will need to have a good credit score and you will get your consolidation loan in about 10 days.
  4. Fundation: Running a big business, but in multiple debt? Talk to Fundation! Their interest rates are also low and they do not have many requirements, as long as your business has at least three employees and your business’ revenue averages at least 100,000USD.

2. Debt relief companies

There are many of these coming up and you will hardly miss a debt relief company within your vicinity. Once you have presented your financial information, the company will review your information, then advice you on the best debt relief or management strategy.

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If debt consolidation is more viable foryou, then you will receive information on the repayment period, fees, and the monthly repayment amount. Besides debt consolidation, there are a debt management plan, debt settlement and debt relief plans that could work for you in some instances.

3. Banks and credit unions

The first place to[3] seek financial advice from has to be your bank or your credit union. These are the places you went to for some or all your business financing. So, when you are in a financial crisis, you may have to visit your local bank or the credit union first.

Unfortunately, these institutions hardly offer debt consolidation services, but when they do, you will part with more interests. Banks and credit unions use the risk-based pricing model.

4. Credit counselling agencies

You won’t miss a few of these in your state. There are various not-for-profit credit counselling agencies that you can approach for debt consolidation services. As long as your business shows a good track record seen on your credit score, your chances of acquiring a loan to repay your debts will be provided.

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Always remember that there are charges associated with these services and you should read the terms and conditions of service keenly before signing.

5. Credit brokers

Whether you find them locally or online, these can be your best debt management[4] resource base. Their connections, financial knowledge, and debt management skills and resources will help you in finding the best debt consolidation loan lenders in the market.

These brokers do come in handy when you are unable to approach the credit lenders or the financial institutions directly. Since they are your intermediaries, you should include their charges and fees, whether one time or monthly, when you set up a repayment account with them.

In conclusion, your business being down financially could be a temporary thing and with the right backing, you can get back on top easily. While filing for bankruptcy crosses the minds of most business owners, it isn’t a highly recommended option and is often regarded the last option. Bankruptcy stays on your credit and financial history for at least 10 years, consolidation will not reflect.

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Once you have an approved debt consolidation plan and a loan, you should review your books to cut down costs, and find ways to save more rather than spend. That is the only way of increasing your revenue and decreasing credit.

Featured photo credit: debt consolidation via debt-consolidation-program.net

Reference

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Kevin Jones

Small Business Enthusiast & Advisor

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Last Updated on June 25, 2019

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

5 Books You Must Read if You Want to Be a Millionaire in Your 20’s

Millionaires and billionaires read more than you think. In fact, the likes of Warren Buffet are said to read 1.000 pages a day. As the old saying goes “There’s no smoke without fire”; so, start off with these 5 incredible books!

1. The 48 Laws of Power

48-laws-of-power

    “If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.”

    On your journey to becoming a millionaire in your 20’s, there will be many people trying to manipulate you into doing what they want. This international bestseller by Robert Greene is the widely read by those in the entertainment industry because of its dog-eat-dog environment. This book is a must-read for anybody who wants to claim power and keep it. it’s a fun read that tells the story of some of the most powerful people in history.

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    An example of a law of power is: Always say less than necessary.

    • When trying to impress, the more you say the more common you look and less in control.
    • Be vague.
    • Powerful people impress and intimidate by saying less.

    2. Influence: The Psychology of Persuasion

    influence-the-psychology-of-persuasion

      “Often we don’t realize that our attitude toward something has been influenced by the number of times we have been exposed to it in the past.”

      This book explains the core strategies people use to influence others using real world examples. Robert Cialdini’s book goes over human quirks like the need to be consistent, and how you can use that in your marketing strategy to make more money. “People’s ability to understand the factors that affect their behaviour is surprisingly poor,” Cialdini says, “which leads to people making poor decisions without realising why.”

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      Cialdini includes real world examples of why people join cults, buy certain jewellery, or give to charity.

      3. Blue Ocean Strategy

      blue-ocean-strategy

        “Value innovation is the cornerstone of blue ocean strategy. We call it value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space. Value innovation places equal emphasis on value.”

        This book argues that leading companies don’t succeed by battling competitors in “Red Oceans”, but by creating “Blue Oceans” where they have uncontested market space to grow. It goes over case studies like “Cirque Du Soleil” who created a blue ocean by creating a circus platform that didn’t include animals or more than one act on at once but instead, decided to focus on talented performers and music who created a mystical storyline.

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        4. The Fountainhead

        the-fountainhead

          “A man’s spirit is himself. That entity which is his consciousness. To think, to feel, to judge, to act are functions of the ego.”

          The Fountainhead takes place in the United States, mostly in New York City, during the 1920s and 1930s. Billionaire Mark Cuban named his yacht “Fountainhead” after this book. This classic novel is about the struggles of an innovative architect named Howard Roark and his effort to achieve success on his own terms. Many entrepreneurs are inspired by this book because it depicts how you should be uncompromising when it comes to your vision and your goals. If you follow this way of life, you develop the ability to change the world and creating something unique.

          5. The Compound Effect

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          the-compound-effect

            “Do you know how the casinos make so much money in Vegas? Because they track every table, every winner, every hour. Why do Olympic trainers get paid top dollar? Because they track every workout, every calorie, and every micronutrient for their athletes. All winners are trackers.”

            This book is by Darren Hardy the CEO of Success Magazine, he goes over how it’s the small, seemingly insignificant choices that compound to create success or failure over time. No one has a plan to be broke and fat but that’s what happens when you don’t have a plan and go along the path of least resistance. Hardy argues that you cannot improve something until you measure it and to always take 100 percent responsibility for everything that happens to you.

            So, those are five books you must read if you want to give it a try to become a millionaire in your 20’s. What are the best books you have ever read? Leave a comment and share these life-changing books with your friends to help them become successful like you.

            Featured photo credit: Bill Gates Foundation via businessinsider.com

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