Enable Accessibility
×
Close
Personal Online Banking
Visit the Personal Online Banking Education Center for information about logging in and using Personal Online Banking account.
If you need assistance, please contact Personal Client Services at 855-SNB-7500 (855-762-7500)
e‑Treasury Business Banking
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact Client Support at [email protected] or 855-274-2800.

Download the Sterling e-Treasury Secure Browser

Business Online Banking
Forgot Password

Visit the Business Online Banking Education Center for information about logging in and using Business Online Banking.
If you need assistance, please contact Client Services at [email protected] or 855-274-2800.
e‑Treasury
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact TM Service at [email protected] or 212-575-8020.


Download the Sterling e-Treasury Secure Browser

Download the Sterling e-Treasury Token Client


Business Online Banking
Forgot Password

Visit the Business Online Banking Education Center for information about logging in and using Business Online Banking.
If you need assistance, please contact Client Services at [email protected] or 855-274-2800
Protect Yourself Against Fraud

Consumer Loan Offer Scam Alert:
Please note that Sterling National Bank does not offer consumer loans through online marketplaces. Beware of loan offers on social media or online ads, scammers are impersonating employees of legitimate loan companies and banks. Learn More

X
close

Pros and Cons of Debt Consolidation

If you have mortgages on multiple commercial properties, you might do better by consolidating them into one loan. People sometimes use the terms debt consolidation and refinancing interchangeably, but they are not the same thing. Refinancing replaces a single loan with a new loan at lower interest rate loan. Debt consolidation converts multiple loans into a single loan.

The point of debt consolidation is to make payments more manageable. It might not be possible to get a lower interest rate. That makes it essential to fully understand the consolidation transaction, consider all the pros and cons, and be sure that improved terms are worth the cost of the new loan and any change in interest rates.

The Pros

> Lower payments. If you find yourself juggling multiple loan payments, maybe you had to take out several short-term loans to make it through a cash-flow crunch. Or maybe they are older loans with higher interest rates.

> Balancing your portfolio. If you own a mix of commercial properties, loan consolidation could allow you offset the risk of some properties with the strength of other mortgages in your portfolio, as well as obtaining better terms and fees on the new loan.

> Organize your finances. Multiple payment schedules may create so much confusion that you actually miss payments. Having only one creditor and one monthly payment makes it easier to pay on time.

More time to pay. Consolidating short-term loans into one loan can extend your repayment period, giving you more time to grow your business and your profits.

The Cons

> Paying more interest over time. Consolidating business debt into a longer-term loan is a two-edged sword: Even though the interest rate is lower, you might pay more in interest over the life of the loan.

> Not addressing underlying issues. If a debt consolidation loan helps with your cash flow, that might only be a short-term fix to a long-term problem. If you haven’t fixed your cash flow problems, lower monthly payments will not help in the long run.  

Related Resources

Commercial BankingWhite Papers
Should You Pay Foreign Suppliers in Their Own Currency?
Paying invoices in U.S. dollars is a common practice for most domestic importers, but using your supplier’s own currency could have significant advantages — for both sides of the transaction. Learn more in this white paper.
Commercial BankingWhite Papers
Helping Attorneys Safeguard Client Funds
When serving as escrow custodians, it’s important for attorneys to take positive action to protect client funds. In this white paper, we discuss some of the fraud risks, as well as identify 5 tools you can use to help protect against fraud.
Commercial BankingArticles
Financing Innovation: Key Considerations for Technology Firms Taking on Bank Debt
Less- or non-dilutive bank debt alternatives do exist for mid-market technology firms… but there are considerations that should be taken before pursuing them. John Hoesley, Head of Sterling’s Innovation Finance Group, breaks down what founders need to know. CHOOSE YOUR BANK WISELY. Founders often work with larger, less-focused financial institutions, mainly because they’ve ‘always banked […]
Connect With Us
Learn more about Sterling products, services and the communities we serve.
We’d love your feedback