{"id":393,"date":"2019-02-25T16:06:42","date_gmt":"2019-02-25T16:06:42","guid":{"rendered":"https:\/\/swoopfunding.com\/ie\/?p=393"},"modified":"2024-03-28T10:11:01","modified_gmt":"2024-03-28T10:11:01","slug":"when-should-a-company-consider-refinancing","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/ie\/blog\/when-should-a-company-consider-refinancing\/","title":{"rendered":"When Should A Company Consider Refinancing?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Refinancing isn&#8217;t simply just for companies suffering from financial difficulties. In fact, it\u2019s a great strategic tool that could be used to free up some cash to pursue your business goals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, if you are looking for favourable interest rates, you might want to consider refinancing your debts. The additional cash can help you deal with sales fluctuations, financing a new project, or marketing a new product.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019ve taken a loan for your business and your credit rating has improved, you could find a facility that offers better interest rates, and terms<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To manage your finances, it\u2019s important that you have a clear understanding of your business financials and cash flow. Take a closer look at your current debt, inventory, payroll, and other operating expenses. If you still feel like you are facing cash flow issues, then it\u2019s time consider refinancing your high-cost business debt.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><b>3 Reasons Why<\/b><b> Your Business Should Consider <\/b><b>Refinancing<\/b><\/li>\n<\/ul>\n<ol>\n<li><b> \u00a0\u00a0\u00a0\u00a0Reduced Monthly Payments:<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Refinancing your business debt allows you to reduce your monthly payments. When done properly, refinancing can cut your monthly payments by 50% to 80%. In a nutshell, lower monthly payments means improved cash flow which helps the business bag more money for investments etc.<\/span><\/p>\n<ol start=\"2\">\n<li><b> \u00a0\u00a0\u00a0\u00a0Low-Interest Rates:<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Another great reason to refinance your business debt is to decrease your interest rate. When your business opts for debt with higher interest rates, it can increased the pay back date of your loan. Sometimes, businesses are forced to extend the term of their loan which can drive the business to the point of bankruptcy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nevertheless, with lowered interest rates, the business could save money and in some cases also use the savings to pay off the principal debt which in turn results in a shorter payment term.<\/span><\/p>\n<ol start=\"3\">\n<li><b> \u00a0\u00a0\u00a0\u00a0High Credit Score:<\/b><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Loans and maxed out credit cards do come with the benefit of providing your business with a high credit score. But, what does a high credit score have to do with your business?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Often times, a low credit score is the main reason why businesses can get their hand on affordable loans. Thus, paying off high-cost business credit cards and loans improves your credit score and reduces your credit utilisation ratio (the amount you owe vs. the total amount of credit available).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, refinancing your business debt can be your way to increase your profitability. However, bear in mind that like regular loans, there are closing costs associated with refinancing. Therefore, review all the different features and costs of your new loan including the following factors;<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Total Cost<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Terms of Use<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Annual Interest Rate<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Total Finance Charges<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Service Fee<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Debt Reduction Fee<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Listing Fee<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Closing Costs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">After reviewing all the factors, if you find the total cost for the new loan lower than the current one, then refinancing is a worthwhile step.<\/span><\/p>\n<p>Not sure whether you should refinance? With our <a href=\"https:\/\/swoopfunding.com\/ie\/business-loan-calculator\/refinance-calculator\/\">refinance calculator<\/a> you can estimate the savings and costs associated with refinancing.<\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019d like to know more about the refinancing process then get in touch and we\u2019ll do the heavy lifting.<\/span><a href=\"https:\/\/swoopfunding.com\/ie\/\"> <span style=\"font-weight: 400;\">www.swoopfunding.com<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Refinancing isn&#8217;t simply just for companies suffering from financial difficulties. In fact, it\u2019s a great strategic tool that could be used to free up some cash to pursue your business goals. For instance, if you are looking for favourable interest rates, you might want to consider refinancing your debts. The additional cash can help you [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":26451,"comment_status":"closed","ping_status":"closed","template":"","category":[1362],"acf":[],"featured_image_urls":{"full":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"thumbnail":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-150x150.jpeg",150,150,true],"medium":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-300x195.jpeg",300,195,true],"medium_large":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"large":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"1536x1536":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"2048x2048":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"image_blog":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-408x252.jpeg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-397x298.jpeg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-31x20.jpeg",31,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-768x480.jpeg",768,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"image_single_banking":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-80x52.jpeg",80,52,true]},"post_excerpt_stackable":"<p>Refinancing isn&#8217;t simply just for companies suffering from financial difficulties. In fact, it\u2019s a great strategic tool that could be used to free up some cash to pursue your business goals. For instance, if you are looking for favourable interest rates, you might want to consider refinancing your debts. The additional cash can help you deal with sales fluctuations, financing a new project, or marketing a new product. If you\u2019ve taken a loan for your business and your credit rating has improved, you could find a facility that offers better interest rates, and terms To manage your finances, it\u2019s important&hellip;<\/p>\n","category_list":"<a href=\"https:\/\/swoopfunding.com\/ie\/category\/funding-resources\/\" rel=\"category tag\">Funding resources<\/a>","author_info":{"name":"root","url":"https:\/\/swoopfunding.com\/ie\/author\/root\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"thumbnail":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-150x150.jpeg",150,150,true],"medium":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-300x195.jpeg",300,195,true],"medium_large":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"large":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"1536x1536":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"2048x2048":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"image_blog":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-408x252.jpeg",408,252,true],"image_podcast":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-397x298.jpeg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-31x20.jpeg",31,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-768x480.jpeg",768,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1.jpeg",768,500,false],"image_single_banking":["https:\/\/swoopfunding.com\/ie\/wp-content\/uploads\/sites\/6\/2019\/02\/rawpixel-602154-unsplash-768x613-1-768x500-1-80x52.jpeg",80,52,true]},"post_excerpt_stackable_v2":"<p>Refinancing isn&#8217;t simply just for companies suffering from financial difficulties. In fact, it\u2019s a great strategic tool that could be used to free up some cash to pursue your business goals. For instance, if you are looking for favourable interest rates, you might want to consider refinancing your debts. The additional cash can help you deal with sales fluctuations, financing a new project, or marketing a new product. If you\u2019ve taken a loan for your business and your credit rating has improved, you could find a facility that offers better interest rates, and terms To manage your finances, it\u2019s important&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/swoopfunding.com\/ie\/category\/funding-resources\/\" rel=\"category tag\">Funding resources<\/a>","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/ie\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/blog\/393"}],"collection":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/comments?post=393"}],"version-history":[{"count":1,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/blog\/393\/revisions"}],"predecessor-version":[{"id":31731,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/blog\/393\/revisions\/31731"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/media\/26451"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/media?parent=393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/ie\/wp-json\/wp\/v2\/category?post=393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}