Refinance of Business Debt
The smart use of debt financing is very important to maximize business performance. Additional capital allows a business owner to deploy it to generate a net positive rate of return in their operation. However, often existing debt becomes a financial burden and needs to be replaced with debt on better terms. Kirksley is here to assist you with understanding different options to refinance your existing debt.
Opportunities to Refinance Business Debt to Improve Company Financials
There are several scenarios in which a business owner can generate a better financial situation for the business from the refinance of existing debt. Here are two main examples:
Improve the conditions of a term loan (by getting a new one) in one or more of the following ways:
reduce the interest rate
extend the term
cash-out of built-up equity
avoid an upcoming balloon payment by rolling into a new loan
Eliminate high cost/high fee debt such as credit cards and merchant cash advances
end the cycle of endless rollovers into new merchant cash advances or credit card charges by replacing this dangerous method of business financing with a business working capital loan or a business line of credit in order to gain access to an amount of lower interest funds, some or all of which can be used to pay off expensive debt.
This page refers to business debt refinance scenarios not involving real estate. For the refinance of commercial real estate, please review this page. If you need help to get control of your business debt, contact us today for a free consultation.