If an unanticipated change in the usual cash flow has impacted your capacity to pay back your business’s existing debt or if you are heading towards a bankruptcy, you could be benefitted by adopting an effective debt consolidation strategy. Remember that businesses could be destroyed by debts just the same way as individuals could get drowned in debts.

You know that ever-mounting debts could be necessitating a complete shutdown of your business, while an effective debt consolidation strategy could help businesses in regaining total control over their financial situation. There are numerous debt control choices for small businesses. The three fundamental options include getting a suitable debt consolidation loan, obtaining a small business loan or opting for commercial debt counseling.

  1. Collect loan, credit, and bill statements together. In order to obtain a comprehensive understanding of your business debts, you must consider pulling together and evaluating all existing business debt statements.
  2. Debt categorization is crucial to effective debt consolidation. While assessing each statement, you must identify the debts that require being paid back now and those that could wait for now.  You have the liberty of consolidating only certain debts or you may alternatively opt for consolidation of the total existing business debts.
  3. Compare the rates of interest, loan terms, and fees. Also, assess carefully the potential debt consolidation choices before determining the most effective and beneficial one for your specific business.
  4. Get an appropriate debt consolidation loan from a reliable lender of your choice. Debt consolidation loan could prove to be immensely beneficial to your business provided you are able to get a relatively lower interest rate as compared to what you are presently paying on all your business related debts combined together. Debt consolidation loan could be advantageous to your business provided it would not be extending even beyond the current debt terms. For instance, suppose you need to pay off all your existing debts within the next 10 years, make sure that your new loan does not stretch the payoff date to almost 20 years. If it does so, you would be ending up paying a lot more. Browse through online debt consolidation reviews for more information.
  5. Get a suitable small business loan from a commercial or private lender. You are aware that the same rules and stipulations would be applied to the small business loan as a debt-consolidation loan.
  6. You must consider seeking commercial debt counseling. It is best to contact a reliable and reputed firm that is known to have experience and expertise in business debt consolidation.  You could seek the professional assistance of commercial debt counseling for chalking out an effective plan for paying off all your business debt. Moreover, the qualified and highly-skilled debt counselor would be helping you in the effective execution of the plan. However, you need to pay some fees to the debt consolidation firm for its services.


If you are over-burdened with ever-increasing business debts, you must not get frustrated and do not consider giving up. You must opt for an effective debt consolidation for reaping its benefits.