Can I consolidate multiple business loans to one?

If you have multiple business loans and navigating through them feels a bit like juggling, you will probably find it much easier to consolidate them into a single loan. Loan consolidation involves taking out a new loan to pay off all your loans. The end result is that you will only have a single EMI to worry about each month. If the new loan has a lower interest rate or a longer term, you might even save money. A single loan also means less paperwork and it is easier to track payments.

Lenders will want to see your credit score, your business health and history of repayment. If your business is in better shape than when you took out the old loans you may receive better terms in the new loan.

Always read the fine print when entering into a new loan agreement.

Using an online EMI calculator helps you figure out how much you'll save or pay each month. If you're unsure, consult with your lender or a financial advisor. Consolidating your loans can make sense if it reduces your payments or the interest over all, but it is not always a good idea for all businesses.

Here's a few quick points to remember:

• Be mindful of potential prepayment penalties on your current loans.
• Compare total cost (interest, fees, total duration) before moving loans.
• Your credit score and financial position of your business will determine the terms of your new loan.
• Always read the fine print of the new loan agreement.
• Check out online calculators to help gauge your savings.

Consolidation can get you to take control of your business financing to help keep your focus on growing your business, rather than juggling multiple EMIs.