In these tough economic times it seems that no one is immune or unscathed by the global recession. In one way or another everyone has had their lives altered by the economic downturn and financial turmoil. Whether you are self employed or a sole trader you may experience acute financial hardship without large cash reserves to cushion you.
If you find that you are struggling to pay your debts, then you will be a prime candidate for benefiting from business debt advice. After an initial consultation where your circumstances will be evaluated it will become clearer as to your best options.
One popular solution is debt consolidation whereby all your debts are rolled into one lower monthly payment. Debt consolidation is usually relevant for people who have a tangible asset. If you can offer bricks and mortar, such as a business property or your own home, then the person offering the loan will have some security.
Debt consolidation results in all your business and personal debt repayments on credit cards and loans being rolled into into one manageable monthly payment. This method usually results in a lower interest rate which is easier to keep account of than making several repayments to many different creditors. The new lower monthly payment will mean you are less likely to default which in turn enhances your credit rating.
It all sounds very rosy and indeed there are substantial benefits but there are drawbacks too. It is important to negotiate a fixed interest rate as you can be seduced by low initial variable rates which are easily and quickly raised. There may be prohibitive fees to arrange the new loan. If you already have a poor credit rating then you might be faced with a higher rate of interest which can make the new payment unattractive. Professional business debt analysis will advise on a better solution for you and your business.
At Cooper Matthews we can offer comprehensive business debt advice on debt consolidation as an option for you.