The day to day running of a small business is enough for any entrepreneur, never mind the accompanying debts and related administration that comes along with these duties.

Small business debt consolidation can be viewed as a separate subject of debt consolidation and does not necessarily follow the same routes or processes of personal debt consolidation.

With small business debt a management firm can help the business that is potentially overwhelmed with debt get back on track. By utilizing the debt consolidation process the firm will negotiate with creditors for better repayment and financing terms on unsecured loans such as credit cards, refinancing as well as utility bills and IRS debt bills. This may include reduced monthly payments, reduced interest or no interest and attempt waivers of fees such as over the limit and late fees on facilities held by the small business at banks or other financing institutions.

By utilizing the debt agency the process is managed by a firm, will most likely alleviate the pressure of time constraints on payments, as well as the continued telephone and correspondence duties required by creditors with respect to these various payments. The payments due to your creditors can be made as one lump sum to the debt management firm who will allocate correctly to each creditor and will in turn make those payments on your behalf.

If you have allowed the situation to get out of hand, unfortunately any bad credit notes on your credit report will require further investigation and work to reduce these records. It is however better than declaring bankruptcy, in which case the records will stay on your name for a much longer time.

A small business owner is recommended to use a debt management firm as soon as they realize there might be a problem, and by employing a firm to assist in the small business debt consolidation process will inevitably save you from a bankruptcy problem. To establish if your business is in trouble a useful ration is the debt ration, which is the percentage of after tax income that goes to paying off debt. In the event of the ration being above 60 percent, it is highly like that the debt consolidation process is already overdue and needs to be tackled as soon as possible.

A debt management firm assisting you with small business debt consolidation is not merely about paying your creditors on your behalf. They are professionals and can assist in various debt and credit related issues, including budgeting and counseling. Ensure that you select a reputable, well known firm to look after you and your business in the debt consolidation exercise, these professionals will free up a lot of your time which in turn will allow you to return what you do best, that is run your business and exercise your entrepreneurial flair and abilities. Consider looking into your business’ debt affairs and look at the potential benefits of small business debt consolidation firm to assist you.

For information on small business debt consolidation or even Debt Consolidation pop along to http://sheddebt.net

Business Debt Consolidation FAQ:

Question: I Need a Loan for Debt Consolidation and My Business?
I am in massive credit card debt and I am delinquent on my payments because my husband lost his job and his pay was our main source of income. During that time I started a Direct selling business to make up some of the difference. It has been going well and I am ready to invest more in it. Also my husband got a new and better job FINALLY!!! Now I need a loan for BAD credit to consolidate my credit cards and to invest in my business. I need around $10,000.

Answer: First of all you are not in that much debt — why borrow and pay a fee to settle this debt. I think you should step back and regroup. Take what profits your company brings in and reinvest in your company and use your husband’s earnings to pay down the outstanding debt.

Question: How do I find information on government grants and/or government loans for starting up a new business?
I am in need of funding for business equipment and software to start my own business from home. I have seen commercials regarding government money being out there and available for all sorts of reasons like, business start up, buying a home, renovations, debt consolidations, etc. But, these commercials are advertised by people who want a fee for the information on these grants and loans. I have always figure that if they could find this information then I should be able to also.

Answer: It is hard to find grants to start a business. Unlike the myths that some perpetuate, federal government and even private foundations hardly give grant money for a for-profit business. And yes, grants mean PAPERWORK – lots and lots of it, that is why a cottage industry of grant writers was born.

Nonetheless, you can go to the Catalog of Federal Domestic Assistance (CFDA) and Grants.gov – these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support a for-profit venture.

Question: Business is struggling, how can I pay debt?
Me and my partner have been living together for 3 years – we have had debt here and there but have never skipped a payment and always made ends meat. Two months ago we started a company and we both quit our jobs when we foresaw the potential earnings. Well our business is struggling to survive, we overlooked plenty of things and we are now in debt and have skipped about 1 payment on three different accounts. We are both looking for jobs and don’t know what to do at the end of this month!!?

Answer: Do not “skip”, just be honest. Contact all the people you owe and explain your position. Ask for extra time to pay. This will give you a chance to find jobs.

Question: How can I establish business credit separate from personal?
My business has excellent credit including 3 credit cards and multiple vendors that I buy equipment and hardware from. I am going through a debt consolidation/reduction plan right now and have charged off 3 credit cards and paid a reduced amount as a settlement so basically my personal credit isn’t in great shape.

Citibank recently cut my credit limit on a BUSINESS credit card from $15,000 down to $2000 stating that they reviewed my personal credit and based on their review they lowered the limit on my BUSINESS credit card. How is this possible for them to base my business credit on a personal credit review?

Answer: First thing is you need a DUNS number, which is a credit account for your business. When you set up an account with them you would be asked to list your vendors with which you have payment terms. The DUNS organization will then contact them to verify your information.

Question: Would I be able to get an FHA loan for debt consolidation?
I have a $600,000 home with $450,000 in debt (currently 75% LTV). I have just under $100,000 in revolving debt (a lot on credit cards, had a bad business venture).

Answer: It all depends on the max loan for your area. Go to HUD.GOV and see how much the max is for your zip code.

Question: 22 year old business went belly up I need advice.?
Our construction business after 22 years went belly up due to the economy. We are now in some pretty bad unsecured debt and no one will help us. Everywhere we turn we are told file bankrupcy. We do not want to file bankcrupcy. We owe the money and want to pay it back. However the debts are scattered everywhere and we need to consolidate so we can make the payments. Anyone know of a company that is not a loan shark that I may try. No banks or consolidation companies will touch us. Prior to this our credit was outstanding.

Answer: There are some financial institutes who can help you but they will charge high interest if your company is limited liability. Its probably better to file bankrupt.

Question: Help for a failing small business!?
My brother owns and operates a small mechanics shop that caters to race cars and making street cars ready for racing. He has owned the business for 5 years but is barely making ends meet. He has taken out a second mortage and has obtained about 25k of credit card debt. This is his dream job and loves it and the business is good but he just can’t seem to get ahead and now the debts are piling up and his luck is running out. Are their government grants, free monies or any advise you can give to help him keep his business, pay off his debts AND feed his family?

Answer: Go to score.org to find the nearest SCORE chapter. In the upper left hand corner is a box to enter your zip code. Your nearest SCORE chapter will be on the next screen. Contact them to arrange for a free one on one meeting with a SCORE counselor about steps to take to save your brothers business.

SCORE is a nonprofit organization. They provide a public service by offering small business advice and training.