Why you should think about refinancing as an alternative way to getting funds
Sometimes things happen in a business that you can’t plan for and can change your financial situation. Refinancing assets is an alternative solution that businesses can use to revise a payment schedule for repaying debt. Refinancing won’t get rid of the debt but will instead be used to pay off an old loan and replace it with the new loan offering different terms.
The common reason why a business would choose to refinance is to get a better deal and pay less interest over the life of the loan. This could reduce the monthly payments your making and ease cashflow, giving you access to much needed funds.
How does refinancing work?
- You already have an existing loan that you would like to improve, it may be that it is too expensive, or repayment terms are too long or too short.
- We work with you to find a lender that has loan terms that work better for you.
- You apply for the new loan and use it to pay off the existing loan/debt completely.
- You make payments on this new loan.
Who does refinancing work for?
- Those who are in need of a cash injection.
- Business who want to grow or are currently growing.
- Those who are looking to refurb or develop a new industrial unit.
- Those who want to make their working capital more stable and be less beholden on bank overdrafts.
- Those who already have loan and would like to arrange a new one with better term agreements.
Refinancing is a great way of releasing capital that is tied up in your businesses assets allowing you to grow the business.