Managing debt can be very cumbersome for small business owners and inhibit their ability to grow. Consolidation offers a way to more efficiently manage your debt and allow you to continue operating and growing your business. Here we take a look at the benefits of debt consolidation, the importance of positive cash flow, and how a business cash advance can help get you back on track.
What Are The Benefits Of Debt Consolidation?
Consolidating involves rolling multiple debts such as business loans or credit card bills into a single payment. This can significantly benefit your business as it can lower your interest rate, lower your credit utilization, and even diversify your credit history. Essentially, your current debt would show being paid in full, and a new loan with the consolidated figure would be established. This can improve your credit score, make it much easier to keep track of your payments, and even help you pay off your debt faster. Getting rid of high-interest rates and consolidating into a single payment can also help free up cash flow that is vital to sustaining and growing your business.
Why Is Positive Cash Flow Important?
Cash flow is essentially all money that is going in or out of your business. Having a positive cash flow means that you have cash on hand to handle everyday expenses, invest in your business, pay off debts and take advantage of opportunities when they arise. It is very difficult to grow a business when you lack a positive cash flow. Consolidating your debt can help alleviate cash flow issues as it can lower your interest rates and organize your debt into a single payment. This makes it much easier to save for and plan projects that will ultimately help grow your business.
How Can A Business Cash Advance Help?
Business cash advances work a bit differently from traditional loans. The payments are based on a percentage of your daily credit card sales. This means you are only paying down your debt when your business is making money. This makes a BCA even better than traditional loan consolidation as you will not need to plan for a large repayment bill each month. This makes it much easier to manage cash flow and helps ensure you have the cash on hand necessary to invest in growth initiatives. Additionally, traditional loans often require a strong credit history and collateral, take weeks for approval, and have structured repayment amounts and due dates. A business cash advance from Quikstone Capital Solutions has many differences, including:
- No collateral required
- No application fees
- Competitive rates based on credit scores
- Typically approved within 48 hours
- Payment terms can range from 3-12 months
- Payment amounts rise and fall with daily card sales
We fund a minimum of $5,000 up to a maximum of $250,000, depending upon your average monthly sales and the strength of your business. Your business may qualify for more than you think. Click below to apply now.
