April 18, 2019 – ONEBOX FUNDING

April 18, 2019

There are many different types of loans a person can take out, from many different types of lenders. For example, a college student can take a student loan from the government, from a private lender, or from the bank, whereas a new homeowner can take a mortgage out from a whole handful of different providers. Each type of loan and lender has very different payment terms, interest rates, and requirements for eligibility.

Taking out a loan for your business is no different. There are so many different types of business loans, it can be intimidating to know if you’re choosing the right one. In this series, we will talk about the 5 main loans you can take out for your business. Today we will cover one of the most attractive loans taken out by business owners: Debt Consolidation.

What Is Debt Consolidation?

Taking a loan for the purpose of Debt Consolidation is a move made by many businesses. Often times, business owners must take out multiple loans over the course of many milestones throughout their business’s life. Because they have not taken these loans out all at once, they often come from different lenders and come with different interest rates and payment terms. Taking out a loan for Debt Consolidation entails taking out a loan for the sum of all of your multiple loans, combined, using it to pay them all off, and then continue paying off this one, individual loan to one specific lender.

Who is Debt Consolidation Best For?

Debt Consolidation is a great move for business owners who find themselves with debt coming from multiple loans, especially those with high interest rates and tough payment terms (i.e. not enough time, payments are too frequent, etc.). Even if the payment terms are alright, it can be helpful to condense everything into one single monthly payment that goes to one place, instead of having to keep track of each due date and each location to sent the money to.

The Benefits of Debt Consolidation

Debt Consolidation has the benefit of taking all of your different loans, no matter what they were taken out for, and condensing them all into one place. This means you only have to worry about one single payment with one fixed interest rate that goes to one place. Consolidating your debt into one loan gives you peace of mind by making everything a lot more organized.

The Cons of Debt Consolidation

If you have multiple loans with low interest rates, consolidating them might not be in your best interest, as there is a chance of the new loan’s rate being higher, therefore you end up paying more money in the long run. Always check to make sure you are paying off and combining loans by taking a Debt Consolidation loan with a better rate.

Does it sound like Debt Consolidation is the right type of loan for your business? Find out more with One Box Funding here.

by Eli

April 18, 2019

“Time is money” is probably a phrase you’ve heard before, especially if you happen to be one of the hard-working people who start their own small business. Whether you wanted to work with something that you’re passionate about, or you just want to be your own boss and make your own hours, having your own business is something that you can be very proud of. However, it’s not all fun and games. In fact, it is an unimaginable amount of hard work to start your own company, which is why most business owners are losing sleep (especially during the first 6 months to a year).

So if time is money, that means that every minute you spend working on growing your empire is another dollar coming your way. This is true, to an extent, however, there is a peak and plateau that comes with working all hours of the day. It’s great to work hard and passionately in order to build the business of your dreams, and it’s even better to have goals for the future of it. But, working day in and day out for extended periods of time without a break is actually a recipe for disaster. Here are 3 big reasons to disconnect fully from your company from time to time.

1. Preventing Burnout

Burnout is one of the leading causes of failed new businesses, and it can happen if you are not taking enough breaks. When you first come up with an idea, you are full of passion, innovation, and excitement, and you are running on pure adrenaline to put your ideas into motion. Unfortunately, this burst of motivation does not last forever, and you’ll find it quickly leaves you once tedium and struggle (which are inevitable for any business) set in. Make sure to pace yourself and distribute your energy evenly by taking intermittent breaks from your work, so that you don’t burn out after a few months.

2. Having a Fresh Perspective

When you find yourself looking at the same problem for a long time, without a break, you begin to lose clarity and focus. However, if you were to take a step back and do something else for a while, most likely you’ll find that when you do return, you will be able to look at the situation in a different, refreshed way.

3. Appreciate Your Life Outside of Business

Focus on something other than your dream company? Absolutely. It’s so important to remember that there are always other aspects of your life, like your family and friends, your health, your hobbies, etc. To have a truly full life, you need to make sure that your business doesn’t take you away from the people you love.

Want to learn more about the best business loans? Check out Onebox Funding here and get a FREE quote.

Debt Consolidation: How Does it Work?