The Pros and Cons of Refinancing Your Business Debt
Are you thinking about refinancing your business debt? Perhaps you borrowed money when your credit score was low, during the recession or through a cash advance company because you were in a rush to receive the funds. Now it’s time to begin looking for a better lending option to obtain a more favorable fixed interest rate and save yourself some money.
What are the Pros and Cons of Refinancing Business Debt?
Before you make any decision about whether refinancing business debt would be suitable, it is advisable to look carefully at the pros and cons.
- You can reduce the amount of interest that you are paying
- You can change the repayment term compared to your existing debt
- You can consolidate a number of existing debts into one which is easier to manage
- You may improve your cash flow
- You can improve your business’s reputation with creditors and reinforce relationships with suppliers
- You may be able to reduce your monthly payments
- You may have to pay early repayment fees or penalties when paying off existing debt
- You may not be able to find better interest rates
Recently a merchant took out a cash advance that carried a 6-month term. Due to the short time frame for repayment, the advance was hurting his monthly cash flow. The merchant chose to pay off his cash advance with a loan from ARF Financial which came with an 18-month term. Extending the term, combined with ARF’s lower interest rates, allowed the merchant to significantly reduce his monthly payments resulting in substantial savings.
Loan Options / Connecting with a Loan Consultant
Here at ARF Financial we have a team of seasoned loan consultants who can speak with you about your refinancing options. You can connect with a consultant in your local area using our finder – the consultation is completely free! You can also fill out our free quote form to receive information on your available options including rates and terms.