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Using debt consolidation for small businesses

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The inflation and devaluation of the dollar is happening and it is really hitting a lot of small businesses hard. Many small businesses are finding that people are not spending money because of inflated gas prices that are really hard to afford along with high credit card debt and other things. If you have been borrowing money to purchase products you may find that your business is barely surviving. Businesses that are in large amounts of debt do have some options available for them. One of these options is to consider using debt consolidation.

How does debt consolidation work for companies? What happens is your accounts receivables may be much lower from your accounts payables and this has led to “RED” all over the company balance sheets. You can find out how quickly your cash reserves will dry up and just how hard it is for you to stay afloat when money isn’t coming in and you have to keep borrowing to stay alive. This is where debt consolidation can help as your debts will be consolidated rather than you turning to bankruptcy and risk losing your business.

Research the companies that work with small business debt consolidation to get the best service. You don’t want to hire a general run of the mill debt consolidation company because they don’t always work out right. Many of them are not truly professional services and they cannot always work with the big creditors in order to reduce your payments or drop the interest rate on your loans.

Gather up all documentation of the company’s debts. You need to see exactly where you are at and what needs to be done. Can you restructure your payment system on your own with the help of your creditors or will you need to turn to debt consolidation to do this? Sometimes you can fix your own problems with just a little bit of craftiness and being prepared.

Prepare yourself for bankruptcy if debt consolidation isn’t going to work. This isn’t going to be easy to do but it might end up being the only option you have to choose from when you are stuck between a rock and hard place.

Talk to your attorney as they can help you with business debt relief. Most attorneys will be able to help you settle your debts and they can provide you with information about debt consolidation versus bankruptcy if you are back and forth on which one to choose. Typically with the debt settlement method your attorney will be able to settle the balance for about 70% less! This is a great option but then it does means your business credit is shot and it’s going to be awhile before you can repair it and to get new businesses to work with you.

If you still want to try and pay your bills to the best of your abilities than you need to consider using business debt consolidation. They can lump all the debt into a single monthly payment and they can also help to reduce the monthly payment requirement. This will really make it affordable for you to be able to pay off your debts and to have several benefits as well like lower interest rates and more money in your cash flow.

Another thing to consider is a debt consolidation loan. This is where you roll it all into a single loan and pay it off in 5 years or less. It is a smart option if you have multiple loans and higher balance credit cards out there. At least with this you do have a date as to when you will finally be debt free!

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