Debt Consolidation
Combining multiple existing debts into a single new loan, typically to simplify repayment or reduce the combined total payment.
For a business juggling multiple loans or stacked advances, a consolidation loan pays off the existing balances and replaces them with one new obligation, ideally with more manageable terms or a lower combined daily or monthly payment.
Consolidation doesn’t reduce the total amount owed on its own, and qualifying for a strong consolidation loan usually requires the business to demonstrate it can support the new combined payment, so it’s most effective when addressed before cash flow becomes severely strained.
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