{"id":40107,"date":"2021-01-19T14:35:13","date_gmt":"2021-01-19T14:35:13","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/blog\/how-to-refinance-a-business-loan-2\/"},"modified":"2024-12-17T17:12:16","modified_gmt":"2024-12-17T17:12:16","slug":"how-to-refinance-a-business-loan-2","status":"publish","type":"blog","link":"https:\/\/swoopfunding.com\/us\/blog\/how-to-refinance-a-business-loan\/","title":{"rendered":"How to refinance a business loan"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"40107\" class=\"elementor elementor-40107\" data-elementor-post-type=\"blog\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7cb1fa39 e-flex e-con-boxed e-con e-parent\" data-id=\"7cb1fa39\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-cbce894 elementor-widget elementor-widget-ucaddon_aivoov_player\" data-id=\"cbce894\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"ucaddon_aivoov_player.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\n\n\t\t\t<div class=\"aivoov-player-block\">\n\t<div class=\"read_this\">Read this article to me<\/div>\n\t\t\t<style>\n\t\t\t.plyr__controls .plyr__controls__item:first-child{\n\t\t\t\tbackground:#2e9c8e !important;\n\t\t\t}\n\t\t\t:root{\n\t\t\t--plyr-color-main:#2e9c8e;\n\t\t\t--plyr-audio-controls-background:#f0f2f4;\n\t\t\t--plyr-audio-control-color:#546a7b;\n\t\t\t}\n\t\t\t[data-plyr=\"mute\"]{color:#2e9c8e !important}\n\t\t\t.aivoov-text-color{color:#546a7b}\n\t\t<\/style> \n\t\t<div class=\"audio_player\">\n\t\t<audio class=\"js-player\" controls=\"\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/f9c99bc5-3625-4c0e-bac8-233a98169bcb.mp3\" type=\"audio\/mp3\">\n\t\t\t<source src=\"https:\/\/monky-voice-over.s3.amazonaws.com\/aivoov\/781640cc-7bc1-4bbf-9492-22dedc19678b\/f9c99bc5-3625-4c0e-bac8-233a98169bcb.mp3\" type=\"audio\/ogg\" \/>\n\t\t<\/audio> \n\t\t\t\t <div class=\"powerd_by aivoov-text-color\"><p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/aivoov.com\/?um_source=plugin_powered_by\" style=\"color: inherit;\">Powered by AiVOOV<\/a><\/p><\/div>\n\t\t \n\t\t<\/div>\n\t\t<\/div>\n\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-14ca9cd8 elementor-widget elementor-widget-text-editor\" data-id=\"14ca9cd8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As interest rates drop, many businesses are reevaluating their current loans and looking for opportunities to refinance existing debt to optimize their financial position. Lower interest rates present the opportunity not only to reduce costs of borrowing, but also to free up cash flow to fuel growth and capital investments.<\/span><\/p><p><span style=\"font-weight: 400;\">If you took out a loan when your business was just starting up <\/span><span style=\"font-weight: 400;\">or some time has passed since<\/span><span style=\"font-weight: 400;\">, it\u2019s likely that you\u2019ll now have access to a wider range of business financing possibilities than you did back then. <\/span><\/p><p><\/p><p>Since applying for your original loan, your business may have grown and become more established, you may have built up a business credit history, and you may even have some collateral to put down for a new loan.\u00a0<\/p><p><\/p><p>As a result, your business is likely to be much more attractive to lenders and you\u2019re more likely to get approved for more competitive <a href=\"https:\/\/swoopfunding.com\/ca\/business-loans\/\">business loan<\/a> rates and terms, making now a good time to refinance. Here, we explain all you need to know about refinancing a business loan.\u00a0<\/p><p><\/p><h4 class=\"wp-block-heading\"><strong>How does debt refinancing work?<\/strong><\/h4><p><\/p><p>When you refinance a business loan, you simply take out a new loan to repay your existing one.\u00a0<\/p><p><\/p><p>There are many benefits to doing this. For a start, it could allow you to take advantage of lower interest rates, making your new loan much cheaper than your existing one. Alternatively, refinancing could enable you to choose a longer loan term and reduce your monthly payments, or it could allow you to borrow more to improve your cash flow.\u00a0\u00a0\u00a0<\/p><p><\/p><p>Refinancing can also enable you to consolidate or combine a number of different loans into one loan with one lender and a single monthly payment. This can make managing your business finances much easier.\u00a0<\/p><p><\/p><h4 class=\"wp-block-heading\"><strong>Is refinancing right for your business?\u00a0\u00a0<\/strong><\/h4><p><\/p><p>To decide whether refinancing is right for your business, it\u2019s worth asking yourself the following questions\u2026<\/p><p><\/p><ul><li style=\"list-style-type: none;\"><ul><\/ul><\/li><\/ul><ul><li style=\"list-style-type: none;\"><ul><li><strong>Is your business in a good financial position?<\/strong>\u00a0Has your business credit score and revenue improved since applying for your first loan? If the answer is no, it may be worth waiting a while longer before refinancing.\u00a0\u00a0<\/li><li><strong>Is your personal credit score up to par?<\/strong>\u00a0Lenders may look at both your business credit score and your personal credit score before deciding whether to let you borrow.\u00a0<\/li><li><strong>Why are you refinancing?<\/strong>\u00a0Will refinancing enable you to take advantage of lower interest rates, smaller monthly payments or a longer repayment term? If not, it may not be worth refinancing.<\/li><li><strong>Will you have to pay a fee for refinancing and how much?<\/strong> You may have to pay an application or origination fee of 0.5% to 5% for your new loan as well as an early repayment fee for paying off your existing loan ahead of schedule. Make sure you factor these in to see whether refinancing is still cost-effective.<\/li><\/ul><\/li><\/ul><p>Not sure whether you should refinance? With our\u00a0<a href=\"https:\/\/swoopfunding.com\/ca\/business-loan-calculator\/refinance-calculator\/\">refinance calculator<\/a>\u00a0you can estimate the savings and costs associated with refinancing.<\/p><p><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1dc32eb elementor-widget elementor-widget-ucaddon_refinance_calculator\" data-id=\"1dc32eb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"ucaddon_refinance_calculator.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\n\n\t\t\t\n\n<div class=\"form-calculator\" >\n <div class=\"left_column\">\n <h4>Current loan<\/h4>\n <div class=\"form-group\">\n <label for=\"remainingBalance\">Remaining balance<\/label>\n <div class=\"input-group mb-4\">\n <div class=\"input-group-prepend\">\n <span class=\"input-group-text\">$<\/span>\n <\/div>\n <input type=\"text\" class=\"form-control mask-money\" id=\"remainingBalance\" value=\"250000\">\n <div class=\"input-group-append\">\n <span class=\"input-group-text\">.00<\/span>\n <\/div>\n <\/div>\n <\/div>\n <h4>New loan<\/h4>\n <div class=\"form-group\">\n <div class=\"label_and_numbers\">\n <label for=\"newLoanTerm\">New loan term<\/label>\n <div class=\"tag-number\">\n <output id=\"newLoanTermOutput\">20<\/output> years <\/div>\n <\/div>\n <input type=\"range\" class=\"slider\" id=\"newLoanTerm\" min=\"5\" max=\"30\" step=\"5\" value=\"20\">\n <\/div>\n <div class=\"form-group\">\n <div class=\"label_and_numbers\">\n <label for=\"interestRate\">Interest rate<\/label>\n <div class=\"tag-number\">\n <output id=\"interestRateOutput\">5<\/output>%\n <\/div>\n <\/div>\n <input type=\"range\" class=\"slider\" id=\"interestRate\" min=\"0.1\" max=\"10\" step=\"0.1\" value=\"5\">\n <\/div>\n\n <p class=\"note-calculator\">This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.<\/p>\n <\/div>\n <div class=\"right_column\">\n <h4>Your results<\/h4>\n \n <p class=\"title-result\">Principal\/loan amount<\/p>\n <p class=\"number-result\">$<span id=\"principal\">0<\/span><\/p>\n \n <p class=\"title-result\">Monthly payment<\/p>\n <p class=\"number-result\">$<span id=\"monthlyPayment\">0<\/span><\/p>\n\n <p class=\"title-result\">Weekly payment<\/p>\n <p class=\"number-result\">$<span id=\"weeklyPayment\">0<\/span><\/p>\n \n <p class=\"title-result\">Daily payment<\/p>\n <p class=\"number-result\">$<span id=\"dailyPayment\">0<\/span><\/p>\n\n <p class=\"title-result\">Length<\/p>\n <p class=\"number-result\"><span id=\"length\">0<\/span> months<\/p>\n\n <p class=\"title-result\">Total monthly payments<\/p>\n <p class=\"number-result\">$<span id=\"totalMonthlyPayments\">0<\/span><\/p>\n \n <p class=\"title-result\">Total interest<\/p>\n <p class=\"number-result\">$<span id=\"totalInterest\">0<\/span><\/p>\n \n <a href=\"https:\/\/us.swoopfunding.ca\/stage\/\" class=\"btn btn-lg btn-dark btn-block\" target=\"_blank\" rel=\"noopener\">Borrow $<span id=\"resultCTA\"><\/span><\/a>\n <\/div>\n<\/div>\n\n\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a24828c elementor-widget elementor-widget-text-editor\" data-id=\"a24828c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2><strong style=\"color: #003e52; font-size: 24px; letter-spacing: -1px; text-align: var(--text-align);\">5 steps to refinancing your business debt<\/strong><\/h2>\n<p><\/p>\n<p>If you decide to go ahead and refinance your business loan, here\u2019s your five-step plan to guide you through the process.\u00a0\u00a0<\/p>\n<p><\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol><\/ol>\n<\/li>\n<\/ol>\n<h3><strong>1. Look at what you owe<\/strong><\/h3>\n<p><\/p>\n<p><\/p>\n<p>Firstly, compile a list of your business debts, including the amount owed, the <a href=\"https:\/\/swoopfunding.com\/ca\/business-glossary\/annual-percentage-rate-apr\/\">annual percentage rate (APR)<\/a>, your monthly payments, the remaining term of the loan(s) and any fees you will have to pay to get out of your loan(s) early.<\/p>\n<p><\/p>\n<p>Not only will this information come in handy when you come to compare your options, it will help you to determine whether refinancing is definitely the most cost-effective option for you.\u00a0<\/p>\n<p><\/p>\n<ol start=\"2\">\n<li style=\"list-style-type: none;\">\n<ol start=\"2\"><\/ol>\n<\/li>\n<\/ol>\n<h3><strong>2. Gather the right documents<\/strong><\/h3>\n<p><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">To improve your chances of getting <\/span><span style=\"font-weight: 400;\">approved for a new loan, it\u2019s important to have the right documents on hand to streamline the process:\u00a0<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">Recent set of financial statements (profit &amp; loss statement (P&amp;L) and balance sheet)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Current debt schedule<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Aging accounts receivable (AR) report<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Company bank statements<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Asset list with equity available<\/span><\/li>\n<\/ol>\n<h3><strong>3. Compare your options<\/strong><\/h3>\n<p>Next, take the time to compare your loan options with Swoop. Make sure you compare interest rates available, as well as the term of the loan and whether there are any application fees. This should help you to weigh up which option suits your needs best.<\/p>\n<h3><strong>4. Submit your application<\/strong><\/h3>\n<p>Once you\u2019ve made your decision, you\u2019re ready to submit your application. The documents you\u2019ve gathered together in step 2 will help you with this.\u00a0\u00a0<\/p>\n<p><\/p>\n<p><\/p>\n<ol start=\"3\">\n<li style=\"list-style-type: none;\">\n<ol start=\"3\"><\/ol>\n<\/li>\n<\/ol>\n<p><\/p>\n<p><\/p>\n<p><\/p>\n<ol start=\"4\">\n<li style=\"list-style-type: none;\">\n<ol start=\"4\"><\/ol>\n<\/li>\n<\/ol>\n<p><\/p>\n<p><\/p>\n<p><\/p>\n<ol start=\"5\">\n<li style=\"list-style-type: none;\">\n<ol start=\"5\"><\/ol>\n<\/li>\n<\/ol>\n<h3><strong>5. Repay your original loan(s)<\/strong><\/h3>\n<p><\/p>\n<p><\/p>\n<p>If you\u2019re approved for your loan, you can use the funds received to repay your original loan(s) and you\u2019ll then make monthly payments to your new lender. If you\u2019ve consolidated more than one loan, you\u2019ll only need to make payments to one lender each month rather than several.<\/p>\n<p><\/p>\n<p>The team of experts at Swoop will be happy to explain the best way for you to go about refinancing and to support you throughout the process.\u00a0<strong><a href=\"https:\/\/us.swoopfunding.ca\/stage\" data-type=\"URL\" data-id=\"https:\/\/us.swoopfunding.ca\/stage\" target=\"_blank\" rel=\"noopener\">Get started with Swoop today.<\/a><\/strong><\/p>\n<p><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fe9c685 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"fe9c685\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"http:\/\/us.swoopfunding.ca\/stage\/\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Create your free account<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>As interest rates drop, many businesses are reevaluating their current loans and looking for opportunities to refinance existing debt to optimize their financial position. Lower interest rates present the opportunity not only to reduce costs of borrowing, but also to free up cash flow to fuel growth and capital investments. If you took out a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8928,"comment_status":"closed","ping_status":"closed","template":"","category":[59,344,250,307,41],"class_list":["post-40107","blog","type-blog","status-publish","has-post-thumbnail","hentry","category-blog","category-sme-support","category-savings","category-loans","category-funding-resources"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--scaled.jpg",2560,1709,false],"thumbnail":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--150x150.jpg",150,150,true],"medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--300x200.jpg",300,200,true],"medium_large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--768x513.jpg",768,513,true],"large":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--1536x1025.jpg",1536,1025,true],"2048x2048":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--2048x1367.jpg",2048,1367,true],"image_blog":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--408x252.jpg",408,252,true],"image_blog_full":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--1775x660.jpg",1775,660,true],"image_podcast":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--397x298.jpg",397,298,true],"image_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--30x20.jpg",30,20,true],"image_blog_internal":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--840x480.jpg",840,480,true],"image_blog_medium":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--1024x500.jpg",1024,500,true],"image_single_banking":["https:\/\/swoopfunding.com\/us\/wp-content\/uploads\/sites\/3\/2021\/01\/refinancing--80x53.jpg",80,53,true]},"post_excerpt_stackable_v2":"<p>As interest rates drop, many businesses are reevaluating their current loans and looking for opportunities to refinance existing debt to optimize their financial position. Lower interest rates present the opportunity not only to reduce costs of borrowing, but also to free up cash flow to fuel growth and capital investments.If you took out a loan when your business was just starting up or some time has passed since, it\u2019s likely that you\u2019ll now have access to a wider range of business financing possibilities than you did back then. Since applying for your original loan, your business may have grown and&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/swoopfunding.com\/us\/category\/blog\/\" rel=\"category tag\">Blog<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/sme-support\/\" rel=\"category tag\">SME support<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/savings\/\" rel=\"category tag\">Savings<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/loans\/\" rel=\"category tag\">Loans<\/a>, <a href=\"https:\/\/swoopfunding.com\/us\/category\/funding-resources\/\" rel=\"category tag\">Funding resources<\/a>","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/us\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/40107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/comments?post=40107"}],"version-history":[{"count":11,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/40107\/revisions"}],"predecessor-version":[{"id":40174,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/blog\/40107\/revisions\/40174"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media\/8928"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=40107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/category?post=40107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}