Using business debt consolidation loans is a common way for businesses to get their finances back on track by paying off debts with multiple creditors. A business consolidation loan allows businesses to obtain one loan to pay off other business debts. This means that rather than making multiple monthly payments to different creditors, businesses can make one monthly loan payment.

A key benefit of a business credit consolidation loan is that, in most cases, it helps businesses lower their overall interest rate by offering one fixed rate to pay off debts with other creditors. Consider taking the following steps to weigh the benefits of using debt consolidation loans to consolidate business debt:

1. Determine if consolidating business debt is right for you.

2. Learn more about the types of business debt consolidation loans available.

3. Review features of business debt consolidation loans and other business debt reduction products.

Action Steps
The best contacts and resources to help you get it done

Evaluate your need for a business debt consolidation loan

Excessive business debt can be incurred due to business expansions, unexpected expenses and poor management. Generally when your business expenses exceed your revenues, its time to start exploring business debt reduction products, such as a business credit consolidation loan.

I recommend: Consider using a business debt consolidation calculator provided by KJE Computer Solutions to help you better assess your financial situation. Read more about reasons to obtain a debt consolidation loan by visiting Noobpreneur.com.

Research different types of business debt consolidation loans

There are unsecured and secured business credit consolidation loans available to help businesses better manage their debt. In short, an unsecured business debt consolidation loan won't require collateral. Conversely, a secured corporate debt consolidation loan will require some type of valuable property as collateral in the event you default on the loan.

I recommend: Learn more about debt consolidation for businesses by visiting LowerMyBills. You can also check out ChristiaNet for more information about secured corporate debt reduction.

Compare business debt consolidation loans and commercial debt counseling

Businesses often confuse a business debt consolidation loan with commercial debt counseling. Commercial debt counseling is a service in which a debt counselor helps businesses settle debt with creditors and provides advice on how businesses can better manage their finances. Commercial debt counseling is a service and doesn't include a business debt consolidation loan. In most cases, the counselor will negotiate a lower credit balance or interest rate with creditors. Be sure to inquire about any negative affects this debt consolidation product could have on your credit rating.

I recommend: Learn more about the differences between commercial debt counseling and business consolidation loans by visiting Financial Web. You can also read more about commercial credit counseling and business debt reduction loans by checking out E-Loan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A business debt consolidation loan is designed to help you get back on track, but it's your responsibility to shield your company from getting in another situation in which your expenses exceed your revenue. It's a good idea to seek consultation services from a financial planner to help you learn ways to better manage your debt.

A big balloon of business debt is enough to drown even the most optimistic entrepreneur. Consolidating pay-outs with these steps will help you see less red and more green:

1. Make a complete accounting.
2. Negotiate with your creditors.
3. Work with a pro.

Action Steps
The best contacts and resources to help you get it done

Take a tally

Get an accurate financial picture by determining exactly how much you owe and to whom — as well as what's owed to you.

I recommend: Add up the arrears with CCH's Debt Calculator. Create a 12-month sales forecast with SCORE's template to determine how long it will take to earn what you owe. To collect any outstanding money owed to your company, call or visit customers, impose late fees or use one of these templates to generate past-due notices.

Liquidate what you can

Turn all but essentials into cash to pay down the debt even further. Secure your remaining assets to shield them from litigation.

I recommend: Put real estate and investment assets into a limited partnership and distribute non-vital business assets to owners. WiserAdvisor can help you in a free search for a financial advisor.

Prioritize your payments

Determine who must be paid now for you to stay in business, and which bills can wait. Offer to barter with your creditors instead of paying cash. Negotiate debt reduction on your own only if you're confident the company won't then file a claim.

I recommend: Call one of SCORE's retired executive volunteers to help with the tough decisions. Bone up on BusinessBalls' Debt Negotiation Tips to make creditor conversations go smoothly. Join a local bartering consortium or the International Reciprocal Trade Association to avoid future debt.

Get outside help

You don't have to go it alone.

I recommend: Companies like Business Capital or Commerical Debt Counseling Corp. can help you restructure your debt. Remember to keep critical suppliers out of the debt-restructuring agreement so vital supply lines stay open.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  List all debts, even those you deem minor or flexible.
• •  Don't make promises to creditors that you can't keep.
• •  Stop doing business with customers who constantly pay late or whose accounts are long past due.
• •  Keep expenditures at a minimum until everything's paid off.
• •  Limit your exposure: Avoid offering personal guarantees on business debt; it can ruin your personal credit history.

Excessive business debt is sometimes incurred due to business expansions, unexpected expenses or even poor management of finances. Typically, consolidating business debt may be a viable option for you if you see trends that your business expenses are currently, or could in the very near future, exceed your business revenue. Or you may be in a position as a financial adviser or consultant to help other companies improve their financial foothold with business debt consolidation.

Business debt consolidation education and training can help you get finances back on track for yourself or your clients. By obtaining education about a corporate debt consolidation loan, you can learn about the advantages and disadvantages of combining debts with multiple creditors into one monthly loan payment. Consider the following tips on how to obtain the business debt consolidation education and training you need.

1. Take advantage of various educational tools on business debt consolidation.

2. Enroll in business debt reduction courses.

3. Consult with business debt consolidation counselors.

Action Steps
The best contacts and resources to help you get it done

Get smart about debt consolidation by taking advantage of educational resources

Knowing how to effectively manage business debt is critical when trying to build or maintain a successful business. A key benefit of a business debt consolidation loan is that, in most cases, it helps businesses to lower their overall interest rate by offering one fixed rate to pay off debts with creditors. Attending seminars or conferences about debt management can help you explore business debt consolidation options as well as other alternatives to keep your business profitable or help your clients' businesses become more financially stable.

I recommend: The American Association of Debt Management Organizations regularly hosts conferences for members and non-members to obtain additional information about debt management options. You can also obtain extensive business debt consolidation education by attending free seminars hosted by Robinson & Associates Firm.

Enroll in business debt consolidation training courses

Enrolling in debt management classes either in a classroom or online can help you sift through the options and determine which business debt consolidation option is best for you or your clients. The knowledge obtained from debt management courses can be used to help you make wise decisions about not only debt consolidation, but also other financing strategies.

I recommend: Learn about the various business consolidation debt options and how to effectively manage debt by signing up for Total Money Makeover hosted by Dave Ramsey. You may also consider enrolling in courses offered by Wealth Strong International to become a certified Financial Coach, which would provide you with the skills to counsel your staff and other businesses on a range of debt solutions including debt consolidation.

Consult with business debt consolidation consultants

Individuals trained to coach businesses on business credit consolidation and other debt reduction strategies are resourceful. They can help businesses sift through the myriad information about business debt consolidation loans and how these types of loans could affect the financial position of your business.

I recommend: Consider contacting American Finasco to obtain education on the pros and cons of corporate debt financing and consolidation. You can also learn more about corporate debt reduction via federal loans by visiting Trade of Credit.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Arming yourself with business debt consolidation education and training could help you to not only get a business on the right track, but also maintain a good financial record. It's important that you learn all that you can about the pros and cons business debt consolidation before submitting a loan or credit application so you'll be well aware of any credit ramifications or possible legal issues.