Janet lives in a small town that didn’t have a copy center. Being a great entrepreneur, she decided to open one up. She found a building to rent and took out a loan to pay for the two-year lease and for the necessary equipment and materials.
Business was slow during the first few months. She did not have enough money to meet payroll expenses so she had to take out another small loan to get her by until her customer base increased. When two of her copy machines went on the fritz, she had to borrow money to replace them. When many customers inquired time after time if she had a laminator, she finally broke down and bought a laminator after getting yet another small loan.
For small business owners, capital is sometimes hard to come by. Sometimes, for various reasons, the business owner has to take out several loans to get his business up and running and to keep it running.
One of the main reasons debt consolidation service was so appealing to Janet was the fact that instead of having to manage and track six monthly loan payments, she only had one payment to make. That made her bookkeeping so much simpler.
Another reason was that she was able to get a lower interest rate on her consolidated loan.Because she got a lower interest rate, it would save her money in the long run.
A third reason that the loan consolidation was appealing was that her monthly payment was smaller than the total amount of her six loans. She paid out less money on a monthly basis which in turn gave her more liquid capital for running her business.
Janet was so relieved to consolidate her loans. Now, she doesn’t mind balancing her books every month. Loan consolidation has reduced her headaches and worries. She feels confident that she will be in business for a long time to come.
