Refinance Your Business Loan & Improve Cash Flow

1
Refinance Your Business Loan Improve Cash Flow
2
What is Business Loan Refinancing?
First off, what exactly is loan refinancing?
Refinancing a loan is the process of replacing an
existing loan with a new one, typically with
better terms. If youre wondering, can you
refinance a business loan, you can. Many business
owners use this strategy to take advantage of
changes in the market or in their business
situations.
3
When to Refinance a Business Loan
The best time to refinance a small business loan
is when your company is performing well and ready
to grow. If your business is performing more or
less the same as it was when you first took out
the loan, a lender is less likely to agree to
refinance. We recognize this is a bit broad, so
lets highlight some good times to consider
business refinancing.
4
1. Interest rates have dropped
Especially pertinent for small business owners
who took out loans in high rate periods between
2022 and 2024, when the Federal Reserve lowers
the federal funds rate that influences all loan
interest rates in the United States, its worth
exploring your refinancing options. A high
interest rate can amount to thousands of dollars
every month, so if you can lower that rate, it
may result in significant long-term savings.
5
2. You need to improve cash flow
Whether its due to a current interest rate
thats too high or a short repayment period, high
monthly loan payments may be a significant drag
on your business. If you find those monthly
payments make it difficult to manage your budget
each month, its worth talking to your lender
about refinancing your business loan.
6
3. Youre ready to expand or grow
Many small business owners take out loans to get
their businesses off the ground. Since new
businesses can demonstrate very little financial
history or credit, they usually have less
favorable terms than businesses that have a
proven record of making on-time payments. As
such, after youve honored the loan terms for a
year or two and your business is thriving, you
may be able to refinance into better terms.
7
4. You have multiple loans that could benefit
from debt consolidation
Sometimes, companies may take out different types
of business loans to meet goals. If your food
truck business got an initial loan to cover
startup costs, an equipment loan to buy a truck,
and a working capital loan to help offset
operating costs like gas and food ingredients,
youre now juggling three loans with a different
repayment schedule. That can be overwhelming and
lead to accidentally missing payments, which can
affect your credit score.
8
5. Your credit score has substantially improved
One of the primary factors lenders use to
determine business loan interest rates is your
personal and, if applicable, business credit
score. When you borrowed the money initially, you
may have had a less-than-stellar personal credit
score. However, if youve paid back the loan on
time and stayed on top of your personal debts,
like credit card payments and a car loan, you
very well may have seen an increase in your
credit score.
9
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

10
Thank You