Consolidating private loans fixed rate
Short-term loans and revolving credit lines are also available for assistance with a company’s short-term and cyclical working capital needs.Maturities for long-term loans vary according to ability to repay, purpose of loan and useful life of the financed asset.
For example, many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month.“If you’re disciplined enough to pay off that low-rate card before the teaser rate expires, that’s one thing.If you’re not sure you can, though, the personal loan may be the better bet.” In addition, a personal loan may improve your credit score by moving credit-card debt over to the installment loan column.The lender’s loans are aimed at those who want to consolidate debt.Discover is one of the few online lenders that allow borrowers to pay their creditors directly, increasing the odds of successfully paying down debt.If you’re already in the hole, every penny matters.
These lenders don’t charge an origination fee on their loans, have competitive rates and offer other advantages: Discover has a minimum credit score of 660 and offers loans starting from $2,500.
The loan limits other financial commitments the company may take on, including other debts, dividends or principals’ salaries, and can require an amount of profit to be set aside for loan repayment.
A Small Business Administration (SBA) loan encourages long-term financing.
Often, a small business uses the cash from a term loan to purchase fixed assets such as equipment for its production process.
A term loan is for equipment, real estate or working capital paid off between one and 25 years.
Otherwise, taking on a new loan to wipe out an old one is postponing the inevitable.