Tips When Considering Refinance
Refinancing or consolidating existing business loans is a great way to make your loan payments more affordable and increase your business’ cash flow. If you’re thinking about refinancing your current business debt there are a few things to take into consideration.
The first thing to do is thoroughly understand your debt. What does your current situation look like and what would it look like if you choose to refinance?
- What are you currently paying and what are your future obligations?
- How much of your payment is interest versus principal?
- Are you able to afford your current payments?
- Will you continue to be able to afford them?
- What will you pay in interest over the life of the loan?
• What will you pay monthly?
• How much interest will you pay over its life?
• Do you have the time to fill out the refinance application?
• Can you afford the potential fees and closing costs?
• Are there potential penalties?
Is refinancing or consolidating your debt the right decision for you? Be sure you take into consideration the work and potential fees that go into a loan application. If the time and effort requirements are too burdensome, you might want to see if there are other ways to increase your cash flow, such as cutting costs until your debts are fulfilled. If you’re not sure what goes into a loan application, ask the lending institution! As with anything there is usually a trade-off between money and time. If you’re willing to put in the work, you might be able to save on your loan payments.
If you find yourself in a situation where you need to refinance debt you want to make sure you are looking at all of your options. Refinancing debt can be a useful tool when your current loan payments are holding your business back. If your business is struggling in other areas you may need to consider additional options, such as seeking out a business mentor.
If you think refinancing is the right option for you, apply with your chosen lender today! See if you might qualify today by filling out Connect2Capital’s simple online form that takes 2 minutes to fill out. You can always ask a lender how much you’ll save if you’re unsure.