We Help Make Unsustainable Debt Sustainable
BUSINESS DEBT REFINANCING DETAILS
Is your expensive business debt eating up cash and making it hard to grow your business?
Whether it’s a short-term loan with a sky-high interest rate, an approaching balloon payment or an expiring bridge loan—refinancing that debt can be a great way to free-up your cash flow.
Debt refinancing lets you restructure your business loans into a smaller, more manageable monthly payment. And it can also dramatically lower your interest rates.
Features of a Debt Refinancing
Rates as low as prime +2.75%
Up to 90% loan-to-value
Up to $5M in funding
Terms of up to 25 years
No balloon payments
You and your business benefit most in the short, and long-term, when you refinance business debt at the lowest rates and best terms possible. And refinancing with an SBA loan gets you one of the most competitive rates on the market. But affordable loan payments is just one the many benefits of refinancing debt with an SBA loan. By refinancing debt with an SBA 7(a) loan debt you’ll:
BUSINESS DEBT REFINANCING BENEFITS
Have the Money You Need to Grow Your Business
Simplify Loan Payments
Stabilize Cash Flow
With a lower interest rate and a lower monthly payment of an SBA loan, you have the money you need to invest in your business. Hire a new employee, buy more inventory, launch a marketing campaign. It’s easier to grow your business when all your income isn’t going toward multiple high-interest loan payments.
Making multiple payments to different creditors can really take a toll on your cash flow. Refinancing puts you back in control of your payment schedule, allowing you to space out loan payments to avoid situations where your cash flow drops dangerously low.
Refinancing can also free up revolving lines of credit, which—as long as they’re paid off each month—help stabilize your day-to-day cash flow.
Tracking multiple loan payments can get tricky, fast. You’ve probably seen it firsthand. You’re the business owner and the bookkeeper, trying to manage five different loan payments on top of your normal payments to landlords, vendors, and suppliers. It can get difficult to keep track of everything.
By restructuring your loans, those five different loan payments become one, easy-to-manage payment.
Improve Your Credit Score
If you have too much debt, it can have a negative effect on your overall business score. Debt refinancing can help you leverage your debt to get the best score possible.
When you refinance debt, you reduce your credit utilization ratio –the amount you owe compared to the total amount of credit available. A lower utilization ratio will improve your overall credit score.
Qualify for Additional Borrowing
Many small businesses decide to take out a working capital loan during refinancing. This makes sure that the transition goes smoothly—especially in terms of monthly cash flow—without having to resort to any last-minute, high-interest loans.
But lenders may be wary of loaning to borrowers with six or seven debts already assigned to the business. By refinancing and consolidating your loans, you better your chances of qualifying for loans you may need in the future.
Why SBA Business Debt Refinancing is Worth it
LOAN SOLUTIONS FOR DEBT REFINANCE
Examples of Debt Refinancing Across Different Industries
