Business Debt Consolidation Refinance

Many businesses find that existing debt repayments are limiting their business growth, as the monthly demand reduces cash flow and means they can't comfortably invest in other areas of their business. If you feel like your current loans are stifling your business, then it's worth speaking to Rangewell about whether you can consolidate your debt.

You may be among the thousands of businesses affected by the economic uncertainty caused by the coronavirus pandemic, subsequent lockdowns, as well as Brexit and other international events. While some businesses were able to tap into government funding, many organisations turned to lenders to help get them through the most difficult times. As the economy recovers, it's the perfect time to take a closer look at your finance roster and assess what works for you. 

Cash flow is one of the biggest issues facing businesses right now. So, if you find yourself among the business owners unable to meet the demands of debt and the running costs of your operation, then speak to Rangewell today, or keep reading to learn more about consolidating business debt.

What is debt consolidation refinance?

As the name suggests, debt consolidation is a type of refinancing that involves consolidating several loans into one easy monthly payment. Many businesses have several different demands on their cash flow, including commercial mortgages, secured loans, tax loans and bridging loans. In some cases, these loans will have to stay in place, while other loans could be rolled into one product with lower loan payments over a longer period of time. 

If the flow of cash is so restricted that the business cannot cover its commitment to expenditure, it can cause long-lasting issues. And if this situation is left to continue for any length of time, and you are unable to pay back creditors, you might even have to close your business.

So, by taking ownership of your financial arrangements now and exploring the possibility of debt consolidation, you might be saving your business from a future of turmoil. Have your loan repayments become unsustainable? Get in touch with Rangewell today and we'll help you to find a debt consolidation plan that fits your business. 

How does business debt consolidation work?

Business debt consolidation means consolidating multiple business debts into one or paying off several loans with another, single agreement. The overall idea is that you can swap expensive debt for more affordable arrangements, cutting your repayments into a sum that you can manage more easily.

By arranging finance from a lower-cost provider, or agreeing on an extended repayment term, you can make substantial reductions in your monthly commitments.

What are the benefits of debt consolidation?

There are so many reasons why you may need to consolidate debt. You shouldn't treat refinancing and debt consolidation as a last chance solution, instead it can be a very productive and useful means of releasing funds and easing the pressures on your business cash flow. 

Here are some of the key benefits of business debt consolidation:

• Reduce monthly repayment: One of the key benefits of refinancing is to reduce monthly payments, often into a single loan. 
• Extend repayment terms: In order to reduce monthly repayments, you might be required to extend the loan term or shift to another business loans provider on a better repayment schedule to suit your needs. 
• Pay off existing commitments: Refinancing is a great way to pay off existing loans, especially short term commitments like bridging loans, or unsecured loans on expensive terms. 
• Find better-suited loans: Again, if you took out a short term loan but require a longer-term solution, then debt consolidation can help to find a better option to support your operations in the long term. Finance products like Merchant Cash Advance, business credit cards and Tax Loans are designed to improve cash flow over a long period of time.
• Simpler bookkeeping - Rather than having to juggle debts and the repayments for multiple sources of business finance, putting them all into one place will make administration and bookkeeping simpler.   
• Increase your ability to borrow additional funds - Debt consolidation can reduce your outgoings, giving you additional funds which you may choose to use to afford additional finance

Do you have financial arrangements that no longer work for you? Get in touch with Rangewell to see how a business debt consolidation loan could help to ease the pressure on your business and make your finance work better for you. 

When should you consider a business consolidation loan?

1. If your business is sound, but you have found that your repayment position is becoming a problem, debt consolidation may be the simplest route out of difficulties.
2. You may be eligible to get better rates and terms than you were able to get originally. 
3. You need to raise additional finance - and believe that your existing debt commitments could prevent you from accessing additional credit. 

Refinancing and debt consolidation with Rangewell

Debt consolidation is a commonly-used technique in business finance - but you may find that your existing lenders are unable to help. Consolidation may require a lender who is prepared to look at the big picture and offer a more attractive rate of interest on your finance. It may also require a different type of lending, such as asset refinance.  

At Rangewell, we work with lenders across the entire funding market. Our team knows those who specialise in refinance, and we can help you find those who can offer the most attractive refunding arrangements for your needs.

Talk to our experts to discuss the details.