Business debt refinancing can be an amazing tool when you are having cash flow problems or are finding in your business that you are constantly feeling strapped and stressed. Here are some of the major benefits of refinancing your debt.
Have More Money
Whether it’s extending the loan term to make payments smaller over the life of your loan, or lowering your interest rates, choosing to restructure debt will free up more money for you. Just imagine the things you can do with a little more money each month: take employees out to lunch, offer higher commissions, finally roll out the grand marketing strategy you’ve had tucked away.
Have Less Stress
Although money really doesn’t buy happiness, there are a lot of ways that having more of it as mentioned above can help you reduce stress in your life. When you know that you only have one or two debt payments to make rather than the seven to 10 that you had prior to your refinance, you free up more time in your life and will generally feel less stressed.
Have Better Credit
Debt refinancing is a great option for those business owners wanting to lower their debt to income ratio. By lowering your monthly payments on a loan or on many loans you have open, you lower your debt to income ratio, which makes you a more favorable candidate for other loan products and increases your credit score as well.
Stay More Organized
Organizing your debt can help you stay more organized on your budget and in your life as a whole. If you were juggling multiple payments, then things were probably getting trickier than they needed to. With multiple loan products, you have multiple amounts to remember to pay each month, and due dates for each. This is enough to make anyone feel stressed and overwhelmed. Restructuring debt may mean trading eight debt payments for one.
Do What You Love
Finally, business debt refinancing allows you to do what you really love to do. When you improve your cash flow, you give yourself more freedom to do the things that you really care about. Being in debt feels a lot like being trapped, and multiple loan products or even just having one loan out that carries high interest rates and unbearable payments can be discouraging. You got into business because you had a passion and drive for it. You believed in what you were doing. You can get back to that again. Refinancing your debt helps you reduce stress, save money, and get back to focusing on making your business great.