repayment
Debt Consolidation
Debt consolidation is replacing multiple existing business debts with a single new loan, usually to reduce total monthly payment or interest cost.
Definition
What it means.
Consolidation makes sense when existing debts carry high factor rates, tight repayment schedules, or different maturity dates that make cash flow unpredictable. A term loan at a lower APR refinancing three BCAs is a textbook consolidation use case.
Be careful with consolidation math: stretching repayment over more months reduces monthly outflow but can increase total interest paid. Run both scenarios before signing. Some lenders offer dedicated refinance / consolidation products with structured payoff to existing creditors.
Now what?
Get an offer that accounts for debt consolidation.
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