Consolidating failing companies

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Extended Payments While lowering interest rates and monthly payments is generally considered to be a positive thing, debt consolidation can also result in the terms of the loan being extended.

Although debt consolidation companies often claim to be negotiating better interest rates, some are actually just drawing out the payment period.

Along with evaluating interest rates and loan terms, business owners might want to steer clear of options involving secured loans, which require you to pledge your own savings or property as collateral.

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For small businesses with several lines of credit, it can be stressful to receive multiple bills each month.Here are some of the top reasons to consider debt consolidation.Single Creditor One of the primary benefits of debt consolidation is that you only need to deal with one creditor instead of many.In other cases, changing your financial habits might be necessary to avoid going into further debt.If you decide debt consolidation is right for your small business, it’s important to do your research before committing to a consolidation strategy.Typically, this is achieved by using funds from a new loan for the purpose of paying off all other debts, so that the only remaining debt to be paid is the new, consolidated loan.

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