Debt consolidation loans are often most worthwhile when you have multiple loans and could benefit from a single loan with one repayment schedule with less-frequent payments—in other words, they’re a great solution for freeing up cash flow and simplifying finances.
It’s even better if you can access a business debt consolidation loan with a lower interest rate than the loans you’re consolidating.
That said, however, debt consolidation can easily create an expensive and repetitive cycle, so you’ll want to make sure you have enough revenue coming in to cover the full amount of the new loan before you decide that this is the right solution for your business.