Just like homeowners refinance their mortgage to get better terms, business owners should occasionally re-evaluate their financing. Refinancing your business loan could improve cash flow, lower your payments, or help consolidate multiple debts into one manageable plan.
Here are four signs it might be time:
1. Your Current Rate Is High
If you’re locked into a loan with a high interest rate, refinancing could save you thousands over the life of the loan—especially if your credit or revenue has improved.
2. You’ve Taken on Multiple Loans
Juggling several payments from different lenders? Refinancing can consolidate your debt into a single monthly payment and reduce stress.
3. Your Business Has Grown
If your business has expanded or stabilized since you originally borrowed, you may now qualify for better terms, longer repayment periods, or higher funding.
4. You Need Breathing Room
Some refinancing options offer interest-only periods or extended terms that can lower your monthly payments. If cash flow is tight, this flexibility can help you weather a rough patch.
Bonus: Look Out for Prepayment Penalties
Before you refinance, double-check if your current loan has prepayment fees. In many cases, the long-term savings from refinancing still outweigh the penalty, but it’s worth calculating.
At Enrado Capital, we can walk you through your current financing setup and show you if refinancing makes sense. No pressure, no nonsense—just real advice from someone who knows the space.
