Why Does Safe Path Advisors Get A Bad Review For Business Debt Consolidation Loans?
Safe Path Advisors has begun flooding the market with debt consolidation and credit card relief in the mail. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2020 Reviews, the personal finance review site, has been following Safe Path Advisors, Jackson Funding, Tiffany Funding, Nickel Advisors, Coral Funding, Neon Funding, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).
Many small business owners need loans to sustain their business in its early stages. Loans help small businesses to keep the cash flow going and keeping up with additional or unexpected costs. However, if you take multiple loans from different lenders, it can become overwhelming. Managing several different loan payments each month is challenging.
Business debt consolidation is an excellent method to deal with this problem. With a business debt consolidation loan, you get to combine all your loans into one. This reduces your work of having to keep up with different due dates and interest rates. Moreover, a business debt consolidation loan usually has a lower interest rate than what you pay on your loans individually.
In this article, we are going to offer some useful tips on choosing the right business debt consolidation loan. Keep reading to learn more!
Things to consider while choosing a business debt consolidation loan
There are several factors that you need to take into consideration when choosing a business consolidation loan. We are listing down the most important ones below:
1. Your reason for consolidating your business debt
Before getting into the process of looking for the right business debt consolidation loan, you need to figure out exactly what you want to achieve from it. Consolidating business debt is a lucrative idea, but you need to consider the benefits that you’re expecting from it. Do you want to consolidate your business loan for a lower interest rate? Or do you want to be responsible for one monthly payment instead of multiple? Do you want to consolidate your business debts so you can pay them off quickly?
Once you have answers for all these questions, you will have clarity about your purpose of consolidating. With this information, you’ll be able to choose the right lender that offers you terms that match your goals. Moreover, you also need to assess your credit score and the financial status of your business. Many credible lenders require a certain level of credit score for offering the best loan terms.
2. Understand the conditions of your current loans
Before you apply for a business debt consolidation loan, you first need to read the fine print on your current loans. Make sure none of your loans charge a prepayment penalty. If there is any such cost, you’ll have to reevaluate the benefits of consolidating your business loans. If the fee is small and doesn’t reduce the benefits of consolidation, then you can go ahead with the application. If not, you will have to rethink your options.
3. Consider the benefits closely
You need to be sure that a business debt consolidation loan will help you save money. You don’t want to end up with a long repayment term and a higher interest rate in the long run. To ensure that you are choosing the right option, study your current debt along with all interest rates, due dates, fees, etc. that are attached. If your current loans are manageable and the interest rates aren’t sky-high, then consolidating your business debt can be counterproductive. Consolidate your business debt only when it saves money and helps you pay off the debt in a significantly shorter time.
A business debt consolidation loan is also a good idea for those who are struggling to keep up with multiple payments each month. If that is causing you to miss due dates and is hurting your credit score, then consolidating your business debt even with a slightly higher interest could be in your favor.
If management is a bigger problem than the cash flow, then consolidating your business debt into a loan with a shorter term and a bigger monthly payment would be an excellent idea. Business debt consolidation does simplify your finances, especially in terms of paying off your debt.
4. The loan terms
Now that you have more clarity on why you want to pursue business debt consolidation, your focus should shift towards the terms and interest rates offered by multiple lenders. It’s important to consider more than one lender so you can compare the offers and choose the one that suits you the best. Make sure that you consider the APR, the total cost of the loan, and the length of the repayment term. Do not forget to inquire about any additional fees or prepayment penalties.
5. Choose the right type of lender
Choosing the right type of lender means determining how you want to make your monthly payments. If you prefer and smooth and streamlines the payment process, then an online lender would be your best bet. If you aren’t tech-savvy and want to keep it old-fashioned, then a credit union or a bank may be the right choice. They offer the option of paying via a mailed check.
However, you must compare different lenders before signing anything. There are a variety of online lenders that offer different terms and have different eligibility criteria. The same is the case with banks and credit unions. You don’t want to jump on the first lender that offers a loan. Comparing different lenders will help you reach the best loan term and conditions. You must also beware of the many debt relief scams on the market since the covid-19 pandemic. The last thing you need to do is add to your financial stress by making an impulsive choice.
6. Gather your paperwork
Before you can apply for a business debt consolidation loan, you need to get all your paperwork in order. Lenders will ask for documents like bank statements, tax returns, your business plan, financial statements of your business, etc. The sooner you provide these documents, the higher will be your chances of getting quick funding. Make sure you don’t put your lender in a position where they have to do a lot of back and forth for the paperwork, especially if you want the funds right away.
Conclusion
Choosing the right lender for your business debt consolidation loan is very important. You need to do your research and compare multiple options before you sign anything. Make sure that the terms and conditions offered by the lender align with your goal of getting your business finances in order.
