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?
Can get a better annual percentage rate (APR) If interest rates have dropped or you're able to qualify for a lower rate than when you applied for your existing loan, refinancing could lower your borrowing costs. Want to change your loan repayment term Maybe you can get a lower APR if you change your repayment period from five years to three. Or, perhaps your business has a lot of expenses right now and you’re looking to lower your payments by extending your loan’s term. (Just keep in mind that extending your loan term can end up increasing the cost of the loan.) Want to consolidate other debts If you have several different types of small business loans with a range of APRs, you may 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
How to Refinance a Small Business Loan
Figure out how much money you’re looking to borrow. You’ll want to first determine how much you owe on your existing loan(s) and whether you want any additional capital added to that number. Look at your credit scores. This can help you determine what kind of rates you may be able to qualify for. Shop around. It can pay to shop around and compare different lenders, looking at APRs (this includes both the interest rate and fees), available loan amounts, repayment terms, and collateral/personal guarantee requirements. Gather your documents. When you apply to refinance your business loan, the lender will review certain documents to determine whether you qualify. These may include: personal and business tax returns, bank statements, financial statements, incorporation documents, and your business plan.
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