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SBA 7(a) & 504 Highlights
- Loan amounts from $100,000 up to $15 million+ (program-dependent).
- Up to 90% financing for eligible acquisitions, real estate, and equipment.
- Use funds for working capital, refinance, expansion, and partner buyout.
- Longer terms (up to 25 years on real estate) to keep payments manageable.
Debt Consolidation Loan in Maryland: A Solution for Struggling Businesses
Running a business in Maryland can be both challenging and rewarding. As a business owner, you have to navigate through a constantly changing market, adapt to new technologies, and manage your finances effectively. However, it’s not uncommon for businesses to face financial difficulties, especially during tough economic times. When faced with high-interest rates and multiple monthly payments, many Maryland business owners turn to debt consolidation loans as a solution. In this blog post, we will explore what debt consolidation loans are, who can benefit from them, and why they are a smart choice for Maryland businesses.
Understanding Debt Consolidation Loans
Debt consolidation loans are a type of financing that allows borrowers to combine multiple debts into one single loan. This means that instead of making multiple payments to different creditors each month, the borrower will only have one monthly payment to make to the debt consolidation lender. The goal of a debt consolidation loan is to simplify the debt repayment process and potentially reduce the overall interest rate and monthly payment.
If you’re a Maryland business owner struggling with multiple high-interest debts, a debt consolidation loan can provide some much-needed relief. By consolidating your debts, you can potentially lower your interest rate and have a more manageable monthly payment, which can free up cash flow for your business. This can be particularly helpful during a slow season or when facing unexpected expenses.
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
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For details on GHC Funding's specific products and to start an application, please visit our homepage:
Credit Score Requirements
In order to qualify for a debt consolidation loan, you typically need to have a credit score of at least 660. However, some lenders may require a higher score, so it’s important to check with the specific lender you’re considering. If your credit score is lower than 660, you may still be able to get a debt consolidation loan, but you may have a higher interest rate.
Approval Time
The approval time for a debt consolidation loan varies depending on the lender and your financial situation. In some cases, you may be able to get approved within a few days, while in others it may take a few weeks. It’s important to have all your financial documents and information readily available to speed up the process.
Common Mistakes Maryland Business Owners Make
When considering a debt consolidation loan, it’s important to avoid these common mistakes:
- Not exploring all options: Many business owners may immediately turn to a debt consolidation loan without exploring other options, such as refinancing or negotiating with creditors. It’s important to consider all options and choose the one that best fits your financial situation.
- Not researching the lender: Choosing the right lender for your debt consolidation loan is crucial. Make sure to research the lender’s reputation, interest rates, and terms before making a decision.
- Not sticking to a budget: A debt consolidation loan can provide temporary relief, but it’s important to stick to a budget and manage your finances effectively to avoid falling into debt again.
- Not reading the fine print: Before signing any loan agreement, make sure to read the fine print and understand all terms and conditions. This will help you avoid any surprises or unexpected fees down the line.
A Real Case Study: How a Maryland Business Benefited from a Debt Consolidation Loan
Let’s take a look at how a real Maryland business, Lisa’s Boutique in Baltimore, benefited from a debt consolidation loan from GHC Funding. Lisa’s Boutique had been in business for over 10 years and had accumulated multiple high-interest debts, including a business credit card and a line of credit. The high monthly payments were taking a toll on their cash flow, making it difficult for them to invest in inventory and marketing.
Lisa’s Boutique had a credit score of 690, which met the minimum requirements for a debt consolidation loan from GHC Funding. They were able to consolidate their debts into one loan with a lower interest rate of 10% and a monthly payment of ,000. This reduced their overall monthly payment by 0, freeing up ,000 in their yearly cash flow. With the extra cash flow, Lisa’s Boutique was able to invest in new inventory and increase their marketing efforts, leading to an increase in sales and profitability.
Frequently Asked Questions about Debt Consolidation Loans
1. Will a debt consolidation loan hurt my credit score?
No, a debt consolidation loan can actually improve your credit score if you make timely payments and manage your finances effectively.
2. Can I use a debt consolidation loan to pay off my personal debts?
Yes, you can use a debt consolidation loan for both personal and business debts. However, it’s important to keep your personal and business finances separate.
3. How long will it take for me to pay off the debt consolidation loan?
The repayment period for a debt consolidation loan varies depending on the amount borrowed and the interest rate. Typically, the repayment period can range from 2-5 years.
4. Can I negotiate the terms of a debt consolidation loan?
Yes, you can negotiate the terms of a debt consolidation loan, such as the interest rate and repayment period, with the lender. However, it’s important to have a good credit score and financial history to negotiate better terms.
5. Is a debt consolidation loan the right choice for my business?
Whether a debt consolidation loan is the right choice for your business depends on your specific financial situation. It’s important to carefully evaluate your options and consult with a financial advisor to determine the best course of action for your business.
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Compare our top-rated commercial and investment property loan programs below.
- No income verification
- 30-year fixed | Interest-only available
- Great for rental properties + STR
- Fast approvals
- Working capital + business acquisition
- Up to $5M
- Low down payment
- Long-term financing
- Owner-occupied CRE
- Low fixed rates | 25-year terms
- Great for business expansion
- Refinance available
- Best for stabilized properties
- Competitive rates
- 12–25 year terms
- Lower fees than private lenders
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Find the Right Financing for Your Real Estate or Business Project
| Loan Type | Best For | Rates | Terms | Highlights | Apply |
|---|---|---|---|---|---|
| DSCR Loan | Rental properties (LTR & STR) | 5.99%+ | 30-year fixed, IO options | No income docs, fast approvals, great for investors | Check My Rate |
| Construction Loan | Ground-up, fix & build, major renovations | 8%–12% depending on scope | 12–24 months interest-only | Flexible draws, great for builders & developers | Get a Quote |
| SBA Loan | Business acquisition, working capital, CRE | Prime + spread | 10–25 years | Lowest down payments, long terms, best for business growth | See My Options |
Ready to Consolidate Your Debts?
If you’re a business owner in Maryland struggling with multiple high-interest debts, a debt consolidation loan may be the solution you need. At GHC Funding, we specialize in providing debt consolidation loans to businesses in Maryland. Our team of experienced financial advisors will work with you to understand your unique financial situation and help you make the best decision for your business. Contact us today to learn more and take the first step towards financial freedom.
CTA: Contact us today to learn more about our debt consolidation loans and how we can help your Maryland business thrive.
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