Debt Consolidation Loans

Info on debt consolidation and finding a business loan to help make finances more manageable

Debt Consolidation
Debt consolidation is a form of financing, which enables a borrower to take our a single loan to pay off a number of existing loans.

What is debt consolidation?

One of the challenges of being a small business owner is that you never quite know what’s around the corner. It’s part and parcel of running a business, but it can also be daunting.

For example, if revenue falls for some reason, or your expenses increase, you might have problems with cash flow and paying back existing creditors that you’re already borrowing from.

This is when having more control over your various loans and lines of credit is really helpful – you can do it by simply bringing them all together into a single business loan.

What are the benefits of a business consolidation loan?

Consolidating your debt can ease the burden of bureaucracy in everyday business life. You’ll only have one creditor to work with, rather than juggling the repayments for multiple sources of business finance like credit cards and invoice factoring. By bringing them into one place, you can free-up time you’d otherwise spend juggling creditor calls and emails, and even open up new funding options, especially if you work with a flexible small business lender like Fleximize.

Also, if you choose a loan with terms that are tailored to your business, you should be able to afford the repayments and have a clearer picture of how much you need to pay back, the period of your term and a main point of contact to discuss any concerns that might arise during the time you're borrowing.

How much do you need to borrow?

As with all business finance activity, you need to go through your current debts with a fine-tooth comb, looking at how much you’re currently borrowing, as well as any fees and ‘hidden’ costs for an early exit.

When you know how much you need to pay off your overdraft, credit card, etc, then you need to look for a lender who’ll understand your position and offer you a positive way forward.

How do you find the right consolidation loan?

First, you need to compare your options. Don’t jump straight into another loan without feeling 100% happy you’ve found the right option.

You could work with a broker, or research UK funding providers using online search tools like the below. Remember you don’t need to rely on the high street banks, since there are loads of alternative finance providers available to SMEs. Take a look at:

Alternativebusinessfunding.co.uk

Betterbusinessfinance.co.uk/finance

There's a range of small business finance options – some are more flexible than others. If you borrow for your business from Fleximize, their team will work with you to make sure you get an affordable arrangement by getting to know your business needs first.

With the right business lending product, you could successfully reduce your regular repayments and get peace of mind from paying off your existing debts.

How do you find a short-term business loan?

A short-term loan could suit your needs perfectly. You won’t be tied to a loan for too long and you’ll have a clear plan for your repayments.

Fleximize’s SME loans include the Flexiloan and Revenue Advance. Both are flexible and you can top up, take a payment holiday or repay early at no extra charge. Limited companies, LLPs, and non-limited partnerships with four or more partners can borrow anything up to £250,000 on an unsecured basis or up to £500,000 on a secured basis, and sole traders or non-limited partnerships with less than four partners can apply for loans over £25,000. The lending term is up to 48 months, and you could have the money in your account in as little as 48 hours.

Remember to have all of your paperwork ready for when you submit your loan application to help speed up the process.

You can choose between secured business loans, which require company collateral as security, or unsecured business loans, which don't but you'll need to provide a personal guarantee.

You can apply online in just a few minutes, and a Fleximize relationship manager will work with you to find the best option. Call us today to find a debt consolidation loan that’ll work for you and your SME: 0207 100 0110.

Click on Apply Now below to open the door to quick and flexible business funding, designed especially for your SME.

Get started: Apply now