Here are 4 More Ways to Relieve Yourself of Small Business Loan Debt
- Restructure your debt (if you can) is one option.
Restructuring your debt can sometimes reduce how much you owe. It may be worth giving any of these debt reduction methods a shot if they apply to your situation. When in doubt, ask your accountant on this front or go to Cancel1Mortgage.info for help.
- Negotiate terms with vendors.
Can you extend payment terms on any outstanding invoices? Alternatively, can you negotiate a bigger discount for early bird payment on new purchases?
- Renegotiate the terms of your loans.
If you’ve fallen behind on your payments, don’t be afraid to pick up the phone and negotiate the terms of your loan.
Sending loans to collections represents a huge loss for lenders; the last thing lenders want to do is send a collections agency after you. Explain your financial situation and ask your lender if they can be flexible with late fees, restructuring payments, and even renegotiating your interest rate. A hardship letter may also help to support your negotiation efforts with creditors.
Just be aware that renegotiating the terms of a loan is likely to ding your Credit Score, so it’s best to use this tactic when you’re not planning to apply for additional credit in the next year or so.
- Consolidate your debt.
Debt consolidation is where you take out one large, preferably low-interest loan to pay off several smaller business loans. This can simplify your monthly finances, and generally carries a lower interest rate than other loans. Watch out, though: many of these require collateral or personal guarantees that might add up to uncomfortable risk.
Debt consolidation works well for businesses with multiple small business loans or lots of business credit card debt, resulting in high interest or too many debt payments each month. To make sure you get the most out of this method, it’s best to seek the advice of your accountant or a financial advisor before consolidating debt. The key is to make sure this method doesn’t just free up maxed-out lines of credit and get you in an even bigger credit or business debt rabbits hole.
Think about it..
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