5 benefits of refinancing your business loan
Unlike home loans, refinancing your business loan is often not talked about. So, did you know that refinancing your business loan could save you and your business valuable time and money? By refinancing your business loan, you could help ensure that your loan is the right fit for your business and reduce the total amount of fees and interest paid over the life of the loan.
Still not convinced? Here are 5 benefits of refinancing your business loan:
1. Consolidate multiple loans
If you have multiple business loans on the go, refinancing and consolidating them all into one loan can help you better manage your cashflow and budgets. With one simple monthly repayment, you may end up paying less in fees and interest in the long run if you can secure a better loan for your needs.
2. Lock in a fixed rate
With the Australian cash rate at historical lows, if you can lock in a better interest rate for the next few years, you could reduce your total loan repayment and free up additional funds to spend elsewhere in your business.
3. Free up your personal assets
If you provided a personal asset, such as your home, as security for your business loan when you first started, the business may now have its own assets that can be offered as collateral instead. Refinancing may allow you to release security over your personal assets.
4. Gain more flexible loan options
Refinancing your business loan may mean you are able to benefit from flexible loan features that you don’t currently have access to, such as offset accounts or fee-free extra repayments.
5. Access the equity in your business
Refinancing may allow you to access equity you have built up in your business, which can help to fund future investments or upgrades.
Ready to refinance your business loan? Check out the Credit Savvy business loans page and start comparing offers today.