Provide any supporting documentation including tax returns, pay stubs, W-2s and bank statements.Inidcate the amount you wish to borrow as the total of your secured debt.If an unexpected change in cash flow has put your business at risk of bankruptcy, or simply affected your ability to pay back existing debt, you may be able to benefit from a debt consolidation strategy It's the risk every entrepreneur takes. Sales are down, or costs go up, and suddenly your current debt repayment plan becomes totally overwhelming. If an unexpected change in cash flow has put your business at risk of bankruptcy, or simply affected your ability to pay back existing debt, you may be able to benefit from a debt consolidation strategy. Simply put, debt consolidation is the process of combining multiple existing lines of credit and loans into a singular account at the lowest possible interest rate. You secure financing--through a few business credit cards and a small business loan, perhaps--that seems reasonable based on your expected revenue. You're making your loan payments, still turning a profit--but then, something happens.Provide a list of the debts you want to consolidate.Often, there is a dedicated section on the loan application for this purpose. Include the creditor name, amount due, monthly payment and due dates.If you can’t stop spending on credit cards, for example because you’re using them to pay household bills, this is a sign of problem debt.You should get free debt advice before taking out a debt consolidation loan.
The downside of many debt consolidation loans, however, is that you may be offered a deal that reduces your monthly payments, but extends the term of your borrowing.Consolidating your debt into a single, secured loan can give you flexibility and peace of mind.Instead of juggling multiple payments to different lenders, you can make a single payment to a single creditor.So before you apply for a business debt consolidation loan, it's important to do the math for your particular financial situation and make sure you're getting a good deal.A financial advisor can help you compare the details of the new consolidation loan with your existing loan agreements.