Best options for consolidating credit card debt
Below we look at what credit improvement milestones you need to make in order to potentially qualify for both an SBA loan and an alternative consolidation term loan.
A good business credit profile will generally have: Understanding business credit reports, how they work, and how you can build your business credit can be difficult.Here are some ways your personal finances might show improvement: Any significant improvement to your personal finances will increase your chances of qualifying for a consolidation loan with better rates, longer repayment terms, and a more convenient repayment schedule.You should also check your personal credit from time to time to stay on top of what your credit score is, so that you can hit the minimum requirements for debt consolidation loans.We asked Mihir Kroke of Able Lending when the right time to apply for debt consolidation was, and this was his reply:“There are two timelines to keep in mind when consolidating business loans.Timeline #1 applies if you had good credit and took out a short term loan because you needed the quick-turnaround time of a short term loan provider.However, it’s an important skill to manage if you find yourself struggling with expensive debt, and checking your score is the first step.
As a small business owner, your personal financial health is just as important as your business’s financial health.
In that case you would want to wait for three months of positive revenue trends before applying for a consolidation loan in order to increase your chances of approval.”In other words, unless you’re consolidating loans you took out for expediency’s sake, you should consolidate your business debt when you’re a better applicant for a loan than you used to be. Here are 5 signs it’s a good time to consolidate your business debt: If your personal credit score has significantly improved since you last borrowed money, then now might be a good time to consolidate your business debt.
An improved credit score is an important qualification for lower interest rates and longer repayment terms.
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Smart Biz may be able to help you consolidate up to $350k in business debt with SBA financing.