Can You Refinance a Small Business Loan?
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Can You Refinance an SBA Loan?
How Business Loan Refinancing Works
When Should You Refinance?
When you could pay less in interest by refinancing. That’s the situation in the example we discussed above, and in this case, refinancing may be a smart move. If you want to either stretch out or shorten your loan repayment term. Maybe you can get a lower interest rate if you change your repayment period from five years to three. Or maybe your business has a lot of expenses right now and you’d benefit from lower monthly payments, so you’d like to extend your payment period with a small business loan refinance. You want to consolidate other debts. You may have several different loans, all at different interest rates, and you might want to roll them up into one monthly payment and interest rate.
Pros and Cons of Refinancing
What Types of Business Loans You Can Refinance?
Commercial Auto Loan
Commercial Real Estate Loan
How to Qualify for Refinancing
A demand or balloon maturity feature The existing debt is on a credit card The interest rate is higher than the SBA’s maximum The loan is over-collateralized
How to Refinance a Small Business Loan
First, figure out how much money you’re talking about. Determine how much you owe on your existing loan(s) and whether you want any additional capital added to that number. Next, it’s a good idea to check your credit score. That way you’ll have a sense of what kinds of rates you’ll qualify for. Shop around. Understanding the variety of loans available will help you be sure that the rate of the loan you apply for is competitive. Prepare your information. In the application process, you will be asked questions about your business, how long it’s been in operation, and what its annual revenues are. You may be asked to provide financial or tax documents as well.
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