Improve Your Business Credit Score Through Debt Consolidation
If you are a small business owner looking to raise capital, your business credit score is something to pay attention to. A good business credit score makes it much easier to get funding. With this in mind, you need to manage your debt wisely and keep your business credit score high.
Failure to Notice Costs
You may think about transferring your credit card balances to one card with a lower interest rate. However, take a look at the other associated costs – monthly charges, annual charges, cash advance fees, convenience fees, overdraft fees, balance transfer fees. Your proposed new card may be more expensive than you think. Also, transferring credit card balances too many times can lower your business credit score. And, don’t be fooled by “teaser rates” – low rates that look enticing but increase in the future. Be aware that being late just once with a payment during the low-interest introductory period will cause your rate to rise significantly.
Debt Consolidation Loan
Continuing use of a credit card after paying it off will likely result in you running up a significant amount of debt again. One way to manage your debts is via a debt consolidation loan. Such a loan pays off some or all of your existing debts. (Note that if you have a debt with a low-interest rate and other low costs, there’s no advantage to including it in a debt consolidation.) Naturally, once you have your debt consolidation loan, you then have to pay it off. This is why it’s so important to find one with these advantages – low up-front fee, lower monthly payments, lower interest rate. Watch out for a balloon payment – low monthly payments, but on a specified future date the remaining balance comes due.
Find the Right Lender
Don’t agree to a loan with monthly payments that you cannot realistically make. Artos Capital is an established lender with an excellent reputation. Set up a debt consolidation consultation with us to see how we can help you consolidate your business debts.