By taking your multiple business debts and leaving you with a single loan to repay monthly, debt consolidation prove to be the best way of dealing with the heavy financial burden. You’ve probably read all about the lowered monthly repayments and how you can make savings from consolidation. But, how do you do the math to measure the eligibility of consolidation? Which elements should you factor into your calculations?
The outstanding debt
This is the actual amount owed to creditors. You may find that your business has many creditors but unless you list these creditors down and the amount you owe each of them, you will be in the dark. That is also a business process that is often referred to as a ‘bad financial decision’. You need to know the principal amount owed plus the interest and the premium and any penalties. Continue reading