Why is Safe Path Advisors Being Accused of Misleading Small Business Customers?
Safe Path Advisors is under review by Crixeo, the popular news and reviews site, for being a potential bait and switch trap and misleading small business customers. According to Crixeo journalist, Ed Miles:
“Safe Path Advisors is the newest bait and switch trap brought to you by none other than the same devil that brought you Silvertail Associates, Malloy Lending, Polo Funding, Jackson Funding, Dune Ventures, Braidwood Capital, Tiffany Funding, Nickel Advisors, and Coral Funding, and about 50 other debt consolidation and personal loan web sites.”
If you have taken on debt for multiple business loans and are struggling to pay it off, you will need to adopt an approach that could simplify your finances and free up cash flow. One of your best bets is to go for business debt consolidation.
A business debt consolidation allows you to pay for multiple, small business loans, thanks to a single debt consolidation loan. Business debt consolidation loans help you pay off debt, so you can combine all loan payments in a single loan. In addition, debt consolidation offers favorable terms, such as low interest rates. This is why if you are looking to make it more convenient to repay your business debt, it would serve you better to review various options of debt consolidation.
Understanding Business Debt Consolidation
Before you evaluate the best methods for business debt consolidation loans, it’s necessary to get a basic understanding of how they work.
Generally, business debt isn’t necessarily a red flag. Truth be told, experts consider debt financing as one of the most effective strategies to invest capital in a business’ expansion. Surveys indicate that around 75% of small businesses finance themselves through debt.
On the flipside, financing can be costly, particularly when you require immediate funding or need to tackle an emergency. At first, applying for more loans may appear as a rational course of action, but you might fall into a tricky debt trap, especially one that requires you to pay exorbitant interest rates. This can severely restrict your business’ growth in the long run.
However, these circumstances can be managed better by opting for business debt consolidation. If it has become too challenging to handle multiple repayment schedules for different business loans, consolidating your business debt can combine all those payments and account in a single loan, thus streamlining your debt repayments. There are two key advantages to this strategy: you only need to follow a single payment schedule and your interest rate is going to be quite low.
Business Debt Consolidation Options
Let’s go through some of the most popular approaches for business debt consolidation.
Traditional Bank Loans
A bank loan continues to remain one of the most efficient methods for business debt consolidation. These loans have longer terms, release larger capital, and offer the lowest interest rates.
If all is so good with traditional bank loans, then what’s the issue? Well, it’s hard to obtain these loans, especially if you run a small business. Hence, if you want debt consolidation loan from a bank, you have to show a strong history, such as having a strong credit score, proof of substantial revenue, records proving you as a qualified borrower, and your experience in your industry.
Those businesses that succeed in consolidating their business debt can expect to pay their debt over a period of 10 years, with an interest rate of less than 10% and make payments each month.
National banks or local community banks may also help you in this regard. Reach out to the bank via in-person meeting or phone and ask what options you have in terms of debt consolidation.
SBA Loans
If you can’t qualify for a conventional bank loan, a SBA loan is a terrific option for business debt consolidation. Even though SBA has multiple loan options, do pay heed to the SBA 7(a) program that involves consolidating business debt. This program’s loan can be utilized for a wide range of goals, such as to consolidate business debt. However, do go through SBA’s stringent laws regarding this matter.
For instance, your original loan’s objective has to align with the guidelines listed in the SBA 7(a). Similarly, the proposed loan needs to have a payment amount that is 10% less than the current loan’s amount, and you also need to write an explanation for all the loans.
Keeping all these factors in mind, an SBA lender may appear similar to a bank – you should treat it as such and apply to get 7(a) in a bid to consolidate your business debt. These loans can stretch from 10 to 25 years with an interest rates ranging between 7% and 9.5%.
SBA 7(a) loans, similar to the bank loans, are preferred by many businesses due to their longer terms as well as favorable interest rates. They are also more accessible when compared to business loans. However, SBA loans need high qualifications and a lengthy application process.
How to Consolidate Your Business Debt
- List down all your debts. Irrespective of whether you have lines of credit, credit cards, loans, merchant cash advances, or others; it’s necessary to review each business debt in detail.
- Make up your mind on which debts need to be consolidated. Since you have written down all the key information in the last step, it’s easy to make an informed decision.
- Calculate how much money you need to borrow. After you have figured out the debts you intend to consolidate, add all of them to calculate the amount you have to borrow.
- Review your options. Compare debt consolidation package from multiple lenders. Pay special attention to the loan fees, APR, and repayment terms.
- Put effort into the preparation of your application. Collect all the mandatory paperwork to prevent any hurdle in the application and approval process.
- Submit your application.
Final Thoughts
To sum it up, there are a lot of factors to evaluate when deciding whether you need to consolidate your business debt.. If you have still not made your mind, here’s what you need to consider:
- Don’t consolidate business debt if your existing debt has a low interest rate.
- If you have several short-term loans that will require considerable time to pay off, it’s better to go for debt consolidation.
- You need a strong credit and financial history to avail the best options for business debt consolidation.
