The Growth Guarantee Scheme (GGS) is live - contact us today 01473 553 430
The Growth Guarantee Scheme (GGS) is live - contact us today 01473 553 430
Are high interest rates or loan repayments putting a strain on your business cash flow and hindering your growth potential?
Whether you are struggling with unfavourable loan repayment terms or multiple debt obligations, refinancing your business loan could be the solution for you.
Refinancing involves replacing or restructuring your current loan with another to secure improved terms, such as lower interest rates and manageable repayment terms. It can be an effective strategy for businesses facing loan-related financial challenges to achieve stability and growth.
In this blog, we explore the business advantages of refinancing and how Jones & Co can help you regain financial stability.
Refinancing at a lower interest rate can significantly reduce monthly loan repayments, improving cash flow. Over the loan term, a lower interest rate can save your business a substantial amount of money in interest repayments.
Refinancing can involve extending the loan term, which spreads payments over a longer period and reduces the amount paid each month. This means that cash flow can be allocated to other areas of your business, such as advertising or market research, that can lead to potential growth.
Combining multiple loans into a single loan can simplify financial management and reduce the complexity of handling various repayments.
Refinancing can help ease restrictive loan terms that might be hindering your business operations. For example, if your current loan has a variable interest rate, which hinders financial predictability and, therefore, budgeting and investments, refinancing to a fixed rate can provide more predictable payments.
If your business’s financial situation has improved since the original loan was taken out, refinancing can lead to better loan terms. Successfully refinancing can also improve your business credit rating, allowing you to obtain financing in the future.
We understand that refinancing your business is a significant decision, which can seem daunting if you are unaware of the process. Here are the six steps involved in the refinance process:
Before you begin the refinancing process, it’s essential to have a clear understanding of your financial situation regarding your existing loans. You should thoroughly assess your current interest rates and terms, creating an outline of your monthly payments, outstanding balances and credit score.
To form a strong refinancing strategy, you need to have clear goals in mind. Define what you want to achieve with refinancing, whether that’s lower interest rates, reduced monthly payments, or debt consolidation.
Just as you did when researching your original business loan, it helps to look at various refinancing options and lenders that support your business needs.
Evaluate the interest rates, loan terms, fees and conditions to determine the best option for you.
Lenders require documentation such as tax returns, financial statements, business plans, and details on your existing loan agreements to determine your eligibility for your application to be accepted. You need to ensure that all your business records are up to date and reflect your current financial situation.
Once you have all the necessary documentation, you can apply for a loan from your chosen lenders. This stage will require you to provide extensive details on your business’s financial health and your reasons for refinancing.
As your applications are accepted and you receive loan offers, it’s important that you ensure the terms align with your business goals. Assess the interest rates, repayment schedule and any additional fees, and if necessary, you can negotiate with the lender to secure more favourable terms.
Once satisfied with the loan terms, you can sign the refinancing agreement and update your financial plans to reflect your new agreement.
Don’t just take our word for it – check out our fantastic reviews on Trustpilot by clicking the link below:
The pressure of loan debt can stifle a business, consuming essential capital and causing stagnation. If you’re experiencing financial strain from high interest rates, multiple financial obligations or market changes, refinancing might be the solution for you.
At Jones & Co, our experts are on hand to provide a personalised refinancing consultation. We network with a wide variety of lenders, meaning that, no matter your requirements, we can connect you with a refinancing solution that meets your needs.
To learn more about our business refinancing services, don’t hesitate to contact our team today.
Are you navigating the ups and downs of borrowing costs, cash flow pressures, and shifting consumer spending?
The latest decision by the Bank of England to cut the base rate from 5% to 4.75% could mark a turning point for UK businesses.
Read more
When Jones & Co, in partnership with Bizcap, were approached by an international paving importer seeking a unique financing solution, we were met with a complex set of challenges.
The company needed a loan facility to support working capital and expansion. Together, we crafted a unique solution to help the business grow, even in the face of complex and legal obstacles.
Read more
Jones & Co are finance partners to a leader in high-end toiletries and soap products. They use us because they know that, no matter their requirements, we can find finance solutions that deliver time and time again.
We’re a finance partner, not just a broker.
Read more
Whether you want to expand your inventory, invest in cutting edge technology, or move your operation to a larger premises, all of these endeavours require significant funding, which for many businesses is not always available, especially for fledgling enterprises.
In this blog, we’ll explore the ins and outs of business loans, from the different business loan types available, and methods you can use to optimise funding.
Read more
Whether you’re a seasoned property investor or a prospective homebuyer, the complexity and jargon of property finance can often seem daunting. However, each financing solution has its purpose and benefits, helping you one step closer to your property aspirations.
In this blog, we unravel the various property finance options available, guiding you through the advantages of residential mortgages, buy-to-let investments, commercial loans, bridging finance and development funding.
Read more
Is merchant card finance right for your business? Explore its benefits, including adaptable
repayments and funding tailored to your needs, with Jones & Co.
Whether you own a local high-street boutique or operate solely through e-commerce, merchant financing offers flexible terms and repayment options to suit your unique needs.
Read more
Discover how SMEs can navigate tax obligation challenges and manage cash flow with versatile tax funding solutions from Jones & Co.
In this blog, our experts at Jones & Co delve into the various tax funding options that are available to SMEs and sole traders and the many business benefits.
Read more
In this blog post, we'll be exploring the key differences between two popular types of asset financing: hard asset finance and soft asset finance. So, whether you're a seasoned entrepreneur or a startup owner exploring business finance solutions, buckle up as we navigate through the nuances of these two essential concepts.
Read more
Merchant funding has become a valuable financial tool for businesses of all sizes, providing them with access to much-needed capital to support growth and expansion. Unlike traditional bank loans, merchant funding offers a range of benefits that make it an attractive option for business owners.
Read more