Many business owners take a \u201cset and forget\u201d approach to business financing. But if your business is growing quickly, has improved its credit or has collateral to put down for the loan, you may be able to refinance your business loan to get lower rates or better terms.<\/p>
In this guide, we\u2019ll show you how to refinance a business loan, including CEBA loan refinancing to take advantage of the federal government\u2019s forgiveness offering.<\/p>
Business loan refinancing may seem a little complicated at first, but we\u2019ll help you through the process. You\u2019ll need to apply for a new loan \u2014 preferably one with a lower interest rate or longer term \u2014 and use those funds to pay off a previous loan. If your business credit score has increased, you have a number of small loans you\u2019d like to consolidate or need to extend your payment period, refinancing is generally the way to go.<\/p>
Beyond the change of lenders, refinancing can take many forms. For most businesses, the goal is to save money by lowering interest rates, though some prefer to lower monthly payments by choosing a loan with a longer term.<\/p>