If you run a business and have debts, it may be time to consider refinancing and maybe consolidating some of what you owe. Doing so has many potential benefits, with the main ones summarised below:
Simplify your finances
Juggling the repayment of a range of loans is time consuming, and can complicate a company’s finances and accounts. Pulling a range of debts into a single loan will therefore make matters a lot less complicated.
Reduce the cost of borrowing
Over time, firms borrow money for various reasons, often ending up with a range of loans under differing terms and conditions. Some will be good deals, but others may have been taken out under pressure when interest rates were high. Often, refinancing and consolidating the loans will reduce the overall cost of a firm’s lending, because better terms and conditions can be negotiated.
Improve your cash flow
Many firms have business cash flow problems, which usually occur for reasons that are beyond the owner’s control.
They can start when a big client does not pay a bill, when demand suddenly drops off or when the exchange rate means that raw material costs rise steeply without warning. Within just a few weeks, these kinds of problems can create serious cash flow issues for a firm. Renegotiating loans can spread the repayments and help enterprises to overcome short-term cash flow issues.
At DJB, we have helped hundreds of firms to improve their cash flow and reduce the cost of their lending. We can help you to refinance, so all you need to do is to give us a call.
Witten by Mike on