Refinancing Business Loans: A Smarter Way to Save

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Refinancing Business Loans A Smarter Way to Save
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What is Small Business Loan Refinancing?
Small business loan refinancing involves
replacing an existing business loan with a new
one, usually with more favorable terms. This
process allows business owners to restructure
their debt, potentially lower loan payments,
reduce interest rates, or extending the repayment
period. By refinancing, businesses can free up
cash flow, making it easier to manage expenses or
reinvest in growth opportunities.
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What Is Needed to Refinance a Business Loan

• There are several items you need to refinance a
  business loan, regardless of the loan amount. You
  will likely need
• Business balance sheets showing monthly and
  annual revenue
• Bank statements and financial statements from
  recent months
• Contact information for your current lender

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Advantages of Business Loan Refinancing
1.Lowering ongoing financing costs When someone
refinances their current loan to a new loan, they
may be able to benefit from lower monthly
payments.
2.Improved cash flow Refinancing can boost a
companys cash flow, saving money with reduced
monthly costs or a more advantageous repayment
schedule.
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3.Increased funding amounts Refinancing a loan
gives the potential for qualifying for a larger
loan amount. How that cash is used depends on
what a business biggest financial needs are and
what the loan terms and conditions allow.
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Disadvantages of Refinancing a Small Business Loan
1.Your credit score could be impacted Refinancing
a loan might result in a hit to an applicants
personal credit score. Taking out a second loan
can also increase ones total amount of debt,
which isnt the best thing for ones business
credit profile.
2.Collateral requirements Small business owners
are required to use collateral when applying for
a loan. If your business credit score has
decreased since yourelast loan application,
collateral might be required for refinancing a
loan.
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3.Prepayment penalties Prepayment penalty fees
might result when someone borrowing money pays
their lender all or part of the loan principal
prior to its due date. A company pays off its
previous loan debt with the funds from its new
loan when refinancing, so if there are prepayment
penalties on the first loan, you could be smacked
with prepayment fees. In this case, the small
business owner seeking a second loan must measure
the ultimate cost of these prepayment fees
against how much hell save by refinancing.
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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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Thank You