A consolidation loan allows your company to take out a new loan to pay off current business debt, including other loans and cash advances. It’s a great way to combine several liabilities into just one monthly/weekly payment to lower current payments. This method can free up cashflow and ease the pressure of multiple payments that are hard to pay.
Before applying for a consolidation loan, utilize the Lendzero Consolidation loan calculator to see your monthly/weekly payments. Insert the information below:
Use our Consolidation loan calculator to calculate the expenses of numerous types of consolidation loans. For example, you can use our calculator as a:
For example: Tom’s Bakery wants to consolidate a total of $250,000 in business debt.
Plus he wants to take $50,000 of additional cash out.
Toms new loan amount would be $100,000 + $150,000 + $50,000 = $300,000
By entering Tom’s $300,000 Consolidated Amount, 8% interest rate and 2 year repayment term into the Consolidation loan calculator, we can see Tom would need to pay $3,151 /month for 2 years. This would cut Tom's payment in half easing the financial burden while also providing the much needed cash out to cover other business expenses.
The Consolidation loan calculator will show you the exact amount you’ll need to repay each month/week in both interest and principal.
To be clear, definitions are below.