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Re-financing existing loan

Business debt refinancing

As a business owner, being able to manage your debt in a cost-effective way is vital. If you have expensive debt repayments that are squeezing your cash flow or have loan terms that no longer suit your business, debt refinancing could be the solution. It allows you to restructure your existing debt to make the repayments more manageable.

When you replace one loan with another, it’s important that the new debt is on the best terms available. And that’s where we can help. At UK Business Finance, we access the whole market to find the best refinancing deals quickly and efficiently, while ensuring your company’s requirements are catered for. Whether you want a loan with a longer term, lower rate or to release funds, we do the hard work for you to find a deal that makes sense for your business.

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What is business debt refinancing?

Business debt refinancing allows you to reorganise your financial obligations by replacing your existing debts. If you’re paying over the odds for a loan or want to change the terms of your current deal, we can help you find a new loan with preferable terms. You then use those funds to pay off the existing loan and repay the new loan over the agreed term.

Refinancing an existing loan can be an effective way to reduce your monthly repayments and free up working capital. You can refinance existing debt using a secured or unsecured loan - this is something we can discuss with you. But whatever option you choose, you need to switch to a deal with a term, rate and monthly repayment that’s the right fit for your business.

What are the benefits of refinancing an existing loan?

Business debt refinancing gives you more control over your company’s debts. You can:

  • Reduce your monthly repayments by getting a loan with a lower interest rate
  • Improve your cash flow by spreading the payments over a longer term
  • Borrow more overall while maintaining a similar monthly repayment
  • Save time and administration costs by refinancing several loans with different providers (known as debt consolidation) to give you a single monthly repayment
  • Reduce the risks by switching to a new loan that doesn’t ask for a personal guarantee

You should always check to see if there are exit fees or early payment penalties on your existing loan before you refinance. You should also be aware that taking out a loan over a longer period may increase the total cost of the loan, even if the interest rate is lower.

Why might you choose to refinance an existing loan?

Here are some of the reasons why you might decide to look for a refinancing deal. 

  • Reduce your debt repayments - You can get a new deal with a lower interest rate or longer term to reduce your monthly debt repayments.
  • The business is in a better financial position - You may be able to find a new loan on better terms if your business has a better credit score or its revenue has increased,
  • Interest rates have fallen - If the Bank of England base rate has fallen then you may be able to find a better deal.
  • Free up working capital - Debt refinancing can provide a welcome boost to your working capital so you have more money to run your business.   

Am I eligible for business debt refinancing?

The eligibility criteria differs from lender to lender. However, you’ll typically need a turnover of over £100,000 and a minimum of two years trading history. The new and existing loans must also be for business purposes. If you have CCJs or an adverse creditor record, you can still refinance and we know which lenders to approach to get the most competitive deals.

Understand your business loan refinancing options

We search the whole of the market to bring you the best business refinancing quotes. There are no fees to pay or exclusivity contracts to sign and we even write the loan applications on your behalf. Request a quote or get in touch to discuss your funding requirements with our team.

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Our team of finance experts can provide industry-leading advice on mortgages to suit a range of different scenarios. Call the team on 0808 301 0624 or Contact Us