What Is Commercial Debt Consolidation?
Commercial debt consolidation is a professional legal service that helps you gain control of your business debts. The idea is to take your debts and make them easier for you to manage. As a result, you won’t get absolved of your obligations, but you will be in a position where it’s easier for you to pay them off.
Typically, there are two approaches to commercial debt consolidation:
- A commercial debt consolidation loan
- A commercial proposal
What Is a Commercial Debt Consolidation Loan?
When business owners see the word “loan,” they get worried. Your financial troubles may result directly from applying for too many loans and having too many creditors on your back.
A commercial debt consolidation loan gets obtained from a bank or financial company to pay all your existing debts under one consolidated loan. Effectively, the loan lets you pay the individual creditors, and you only have to deal with one loan.
The benefit of this is that you have more manageable debt. Instead of dealing with multiple interest rates and fees, you have one payment per month.
The downside is that you still must pay off your debts. Commercial debt consolidation loans are often secure loans, meaning something must get used as collateral.