We hear about consolidation credit in relation to the obligations of individual clients. They are often a salvage when taking loans and borrowings. However, it turns out that this type of solution is also intended for companies. In a situation where there is a problem with the repayment of liabilities in the enterprise, you can try to solve the problem with a consolidation loan. How is it possible?
- Loans for companies
- What is the consolidation of corporate loans?
- How to apply for consolidation of corporate loans?
Loans for companies
Banks and non-bank institutions have a rich offer addressed to individuals as well as entrepreneurs. That’s why today is not a surprise that a company has a loan. Entrepreneurs can choose from start-up, investment, revolving loans and even from lines and credit cards. Such accessibility to financing sources does not mean, however, that it is easy to get. Banks have tightened requirements towards entrepreneurs. However, the truth is that many companies on the market are only and exclusively due to the fact that at some stage, they benefited from the support of banks. The conditions of such loans, however, leave much to be desired. When a company has more than one and there are problems with their repayment, then a consolidation loan is the ideal solution.
What is the consolidation of corporate loans?
In a situation when the management of the company has taken more than one loan to the company and has a problem with their repayment, then it may decide to consolidate them. Especially if they are downloaded in different institutions. The consolidation of loans to companies consists in the fact that all liabilities are transferred to one bank. Instead of many installments, one is paid. What’s more, the costs of servicing such a commitment are lower. Thus, a lower amount is usually paid than if the previous fees were to be added together. You can also manage your finances more easily when you have a debt. It is definitely better to consolidate several loans into one than to pay with which one of them. This ends the deterioration of the company’s creditworthiness and credit history, which does not bode well for the future.However, there is a trap in it, namely – an extended repayment period. Only in this way is it possible to reduce the monthly installment in order to allow convenient payment of all obligations. The effect of extending the repayment period is also the higher total cost of the new loan. However, something for something.
How to apply for consolidation of corporate loans?
Consolidate and refinance business loans in two ways. The first one is quite simplified, because creditworthiness is not examined in it. For the company, it is a great convenience, because it does not have to present financial documents. What’s more, the analysis of the application is quick and based on the analysis of loan agreements to be consolidated. However, this method can be used when corporate loans unsecured up to PLN 500,000 and corporate loans secured up to PLN 1 million are used to consolidate.In another situation, it is possible to apply for a consolidation loan using the income method. In it, creditworthiness is checked in great detail. The company’s financial results are examined, but loans for consolidation are not included in them.However, it is worth knowing that, as usually happens in the case of loans, in order to be able to apply for consolidation, the business owner can not have a negative credit history. The company must operate on the market for at least half a year.