Business debt consolidation

Healthy cash flow is key to any successful business. But businesses of any kind can hit slow periods, which restrict the cash coming in.

If the flow of cash is so restricted that the business has cannot cover its commitment to expenditure, it can mean real problems. If the situation went on for any length of time, and you found it impossible to pay back creditors, the business might be forced to cease trading.

However, if those commitments are repayments on finance arrangements, there could be solutions which will allow the business to get back on track.

Debt consolidation can be a financial lifeline for any business that has discovered that its loan commitments have become unsustainable

Consolidate debts into a single repayment

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 an extended repayment term, you can make substantial reductions in your monthly commitments.

Reduce your business outgoings

You don’t even need to wait for your debt to become a problem. Many successful businesses will use consolidation to reduce their costs, allowing them to release cash for use elsewhere. 

When properly used, debt consolidation can reduce monthly outgoings by giving you longer to repay or by letting you take advantage of lower rates - and by having a single payment to make each month rather than several, it can simplify your account's administration too, making your books look more attractive if you need further funding.

You can also use refinancing to increase your borrowing - by taking out a single loan to pay off existing commitments and to provide extra funds on top.

What are the benefits of a business loan consolidation?

There are several benefits from consolidating your loans:

• Reduced outgoings - if properly planned, you can use loan consolidation to reduce your monthly repayment commitments
• Improved cash flow - by cutting the amount you pay out each month, your overall cash flow can be improved, keeping your outgoings in step with income
• Take advantage of lower interest rates - lower interest rates may be available if you are able to shop around for the most competitive loan - or allow Rangewell to search for you
• Take longer to repay - spreading your repayments over a longer period can reduce monthly repayment s although you may find that your overall repayments increase
• 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

When should you consider debt consolidation

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 addition finance - and believe that your existing debt commitments could prevent you from accessing additional credit. 

Why come to Rangewell for debt consolidation?

Debt consolidation is a commonly-used technique in business finance - but your existing lenders are unlikely to want 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 a Secured Loan.

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.

It means we can help you find the most competitive deal for your needs. 

Talk to our experts to discuss the details.