Business debt consolidation is a financial product that can help businesses to simplify their finances. A consolidation plan will combine loans from several different lenders into one, simplified debt. If you are considering applying for debt consolidation for your business, these are the steps we recommend you follow.
Assess your current business debt
Before deciding whether consolidation is the right avenue for your business, gather the details of all of your existing business debts. The key information to find out is:
- the current balances of all debts and loans
- the interest rates being paid
- the monthly repayments
- repayment terms and clauses
- any early repayment charges or fees
Evaluate your current and short-term financial future
Carefully review your business’s current income, expenses and cash flow. Check your business credit score.
Make sure to be aware of any upcoming large payments, such as a VAT payment or corporation tax, that might affect your ability to afford your monthly repayments.
Explore your options
Research your options regarding business debt consolidation loans. You might be able to find a suitable option from a high street lender.
As an independent commercial finance broker, we at Mill Wood Finance are able to help you understand your options regarding your business finances. It may turn out that a business debt consolidation loan isn’t actually what is best for your current financial position.
Book an initial consultation
We are here to help, with straightforward, honest advice on your best options.
In this initial call, that you can book here, we will run through your business finances and upcoming objectives.
From there, our specialist brokers will be able to provide you with an outline of the different types of financial products on the market.
Prepare for an application
Any commercial finance application requires a lot of paperwork, and business debt consolidation is no different.
The common documents that you will be required to produce are:
- Your business financials, such as the balance sheets, cash flow statements and profit and loss
- Details and statements about your existing loans and debts
- Business information such as registration details and a tax number
- Details about the directors
You may also be asked to provide the financial statements and reports of the directors, especially if you are personally guaranteeing or providing security for the debt consolidation.
Our team are well versed in the application process so will help to guide you through the tedious and often confusing application process.
How we help
Lenders often require a ‘business case’ for a commercial finance loan application.
This business case will set out why you require the consolidation, as well as showing why you are a suitable candidate to receive the loan.
This is where it pays to use a specialist broker such as ourselves.
Not only do we have access to financial opportunities not available on the high street, but we excel in creating compelling business cases that will stand you in good stead for your application.
We also maintain a thorough and up-to-date understanding of the current state of the lending market. Using this, we can explore our panel of lenders to find you the most suitable option for your business debt consolidation.
Review your options
We will review the different options from lenders, and present these to you.
At Mill Wood Finance, we provide full transparency on fees, so you won’t be in for any surprises along the way.
In this review process, we can help you to understand the details and implications of any fees, penalties and clauses that may apply.
Submit your application
We can help you to submit your application for business debt consolidation. The lender will then review your application and creditworthiness. On occasion, there is need to provide additional information or documents.
All going well, you will be approved for the consolidation loan. We will remain on hand throughout the course of your repayments to help you should you have any questions or require some assistance.
If you have questions about business debt consolidation or are ready to start your application, get in touch.