Managing business debt is one of the more stressful challenges entrepreneurs face. That is why we have created this guide—How to Manage Business Debt: Everything You Need To Know—to help you navigate your options with confidence.
If you are juggling multiple loans and payments, it may be difficult to stay focused on your business. Profitable businesses that are looking to achieve more stability and long-term growth could benefit from a Small Business Administration (SBA) loan.
At Business Funding Group LLC (BFG), we specialize in SBA loans. With decades of combined experience, we have helped countless small businesses consolidate debt into more manageable payments.
Business Debt Management for Small Companies
Effectively managing business debt involves knowing which tasks and financial moves you need to undertake to keep every aspect of your loans and credit under control. This includes:
- Monitoring outstanding balances
- Making timely payments
- Strengthening cash flow
- Avoiding high-interest loans
- Consolidating debt
How an SBA Loan Could Help
An SBA loan could be an effective tool for debt management, as it allows you to refinance or consolidate existing debt. The SBA 7(a) loan program is especially well suited for this purpose! However, there are limits to how and when these loans may be used.
SBA loans may be used to refinance high-interest business debt, combine multiple loans into a single, more manageable payment, and create more flexibility within your business’s operating budget. However, SBA loans cannot be used to pay off personal debt—even if that debt was originally used for business purposes. They also cannot be used to consolidate debt from a business that is no longer viable.
To qualify for debt refinancing through an SBA loan, the debt must meet certain criteria. For example, you must demonstrate that you used the original loan for legitimate business purposes. In some cases, you may also need to show that refinancing or consolidating your debt would improve your ability to repay the loan.
At BFG, we know how to help—we could assist you with everything you need to manage your company’s debts effectively.
Is Refinancing Debt Good for Your Business?
Debt could be a valuable tool for small businesses, but when it becomes unmanageable, refinancing could offer relief. Refinancing or consolidating existing debt with an SBA loan might be the best move if:
- Your current loan payments are putting strain on cash flow
- You are only able to make the minimum payments
- You have multiple loans with high interest rates
- You are struggling to keep track of your loans
- Your credit has improved since you first took on a loan
At BFG, we are here to assist you in understanding your business’s financial obligations and ensuring you have everything necessary to oversee your debt with ease.
What Is the Process Like?
Refinancing through an SBA loan with BFG is straightforward and stress-free. We help:
- Review your current debt
- Estimate your new monthly payment
- Prepare and organize your application
- Match you with the right lender
- Finalize your loan
If you have questions about managing your business debt with an SBA loan, we are here to help you understand everything you need for our process.
Contact BFG Today To Learn Everything You Need To Know About Managing Your Business Debt
To reiterate a key principle about how to manage business debt: everything you need to know starts with understanding your current loans and liabilities. Our team of experts is ready to discuss your business’s unique situation and explore how an SBA loan could help ease financial pressure.
Call us for a free 15-minute consultation if you have any questions, or fill out our online loan calculator and application to get started!
(917) 593-5013