Reluctant to buy new equipment because of existing debt load? We get that. It’s not good business to overextend yourself. But sometimes it’s possible to improve cash flow by consolidating existing debt and combine it with a new purchase, and still reduce monthly payments.
Typically, our clients are looking at options to:
- Reduce repayments therefore freeing up cash flow for other business purposes
- Releasing equity in their assets to be used for an expansion of their business, an acquisition of a business or even to assist in a management buyout.
- Correctly structuring finances to their current situation
As we know every business and every finance requirement is unique.
Benefits of consolidating debt include:
- One monthly payment
- Variable & Fixed interest rate options
- One lender
- Flexible terms
- Additional working capital
- Clearing ATO Debt
Debt consolidation is the process of replacing multiple loans with one single loan. This reduces the number of creditors you are paying by consolidating your debts into one payment through a single lender. Oftentimes companies are overleveraged with different sources of debt, and consolidation can help with debt management and potentially reduce monthly payments and improve cash flow. When consolidating debt with one lender, that lender may give the option to extend the term on a loan, thereby reducing the total monthly payment. Paying less each month can increase cash flow and allow more flexibility with seasonality or opportunities for business expansion.
If debt consolidation sounds like the right decision, it is important to work with a Commercial Finance Broker that understands the industry you are in and the equipment you own or want to purchase. Your point of contact at a bank, for example, may not understand the market value of your assets such as property and equipment. They may only take the book value into consideration, without considering the accumulated equity. Nor will they have the flexibility to work with you during times of business disruption.
Ironbark Group Australia can help because we understand debt consolidation using a variety of assets for security such as property, debtors, balance sheet and plant & equipment for financing purposes. We know what to look for when evaluating security positions and the financial circumstances of our customers. We’re used to helping companies obtain the equipment and financing that fit their needs to assist their businesses grow.
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