A debt consolidation loan can pay off the following types of debt:
Companies tend to take on loans to fund their initial operations when they start up or end up taking short term or high cost loans to get them through a limited period of time. Rather than utilizing one line of credit, they will use several loans or advances to cover costs and make the minimum payment so they can maintain high margins. Overall, the consolidation loan can pay off all these loans.
Just keep in mind that a business should only consolidate its business debts. Combining personal and business debt under one new consolidation loan would likely be a nightmare for keeping records accurate, managing cash flow and reporting.
