HomeHome SearchSearch MenuMenu Our productsOur products

How to use debt consolidation to manage your company's debt

by , 10 April 2014
According to the FinScope South Africa 2013 financial survey, about five million South Africans are battling with over-indebtedness. Businesses can drown in debt just as easily as individuals can. And that's where a debt consolidation loan comes in. Read on to find out what it is and how it can help your company to manage debt.


Are you spending TOO MUCH on accounting costs?

REVEALED: The secret to reducing your audit fees…

The truth is you could pay less accounting fees while at the same time prevent fraud, save on tax and Vat costs and keep up to date on changing legislation.

Click here for the cost-effective alternative to audit fees


What is a debt consolidation loan?

SA Home Loans says a debt consolidation loan is a loan you take out to pay off several other smaller loans. And while most people use it to get out of personal financial scraps, it's a useful tool for companies too.

But how exactly does it work?

The best way to explain is to provide a practical example…


How to save on auditors' fees and:

  • Ensure your fixed asset register is prepared by the time your auditor arrives;
  • Maintain your cash flow;
  • Identify problem areas in your business; and
  • Cost less than what an accountant charges for two hours of his work.

Find out how here…


Here's a practical example of how you would use a debt consolidation loan to manage company debt

Henk Heymans an Audit Partner at RSM Betty & Dickson and one of the Accounting & Tax Club's experts says debt consolidation or a debt consolidation loan is often used in debt counselling where a person's debt gets out of hand.

Heymans says, for example, 'if you owe on two credit cards, a clothing account, school fees, are behind on your car instalments, etc. you go and negotiate a credit line facility, or even a second bond and you use that facility to pay off all the other creditors.'

He says when you've done this; you've consolidated your debt on one account.

And you can do the same if you have debt issues in your company – including problems with playing your suppliers.

The good thing about a debt consolidation loan or with debt consolidation is that you get to secure a lower overall average interest rate. And this helps you manage your debt better.

In South Africa, there are companies that offer consolidation loans. If you want to find out about them, contact Debt Consolidation South Africa as it believes 'only a few companies offer great service and consolidation loan options.'

There you have it. Now that you know what a debt consolidation loan is, why not consider it to manage your company's debt?

Related articles

Related articles

Watch And Learn

Related Products


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance

Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today

Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism

This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands

Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>