With the coronavirus pandemic having impacted many parts of life this past year, it has recorded low interest rates, making this a prime time to refinance and lower your monthly payments. If you’re able to secure a better rate and more favorable terms, refinancing your business loan could save your money in the long run.Â
Lowering your loan payments and setting up better repayment dates would free up cash flow within your business. This will give you the opportunity to invest the extra funds in payroll, equipment, inventory or other aspects of the business.
In addition, if a loan refinance would positively impact your cash flow, a lender like ours could approve you for a larger loan amount based on your debt-service ratio, which measures whether you have enough cash to cover your debt. Getting approved for a larger loan amount could save you from taking out a second loan if you need additional funding for your business.