At Jones & Co, we understand that many businesses can suddenly feel the weight of existing debt. Perhaps your business took out finance at a high rate when you needed it most, or some unexpected costs have arisen. Refinancing business debt can be a great solution in these circumstances.
If you are looking for a new loan when you’re already borrowing, it would be worth refinancing the old debt to keep the repayments manageable. If you have kept up to date with the payments including your loan schedule, refinancing business debt can secure a lower rate, allowing your business to benefit from breathing room in terms of working capital.
Debt refinancing allows you to secure a single debt at a lower rate, however, if you have numerous debts, debt consolidation may be the answer.
If you have multiple business debts with different payment schedules, debt consolidation allows you to group together your current business debts into one loan. Debt consolidation involves a new lender with a longer repayment schedule and a reduced fee. This results in better cash flow management amongst lower monthly repayments.