Small business loans to refinance debt
Refinance debt affordably and position your business for new opportunities
Whether you’re in your first year of business, or have been operating for decades, the road to success has likely included borrowing money to expand your operations and capitalize on new opportunities.
If your small business debt feels burdensome or if you need to free up cash, it’s time to take a closer look at your current debt and what it is costing you. Refinancing high-cost business debt can reduce your monthly loan payments, save you money in the long run, and give you peace of mind.
Refinancing business debt with Pursuit
Pursuit offers a variety of small business loans to refinance business debt. Your lender will work with you one-on-one to determine the program that’s best for you. In general, you’ll find the following benefits:
- Loans from $10,000 to $5.5 million and beyond
- Low, fixed interest rate funding
- Longer terms and affordable monthly payments
Business debt up to $100,000 may qualify to be fully refinanced in just 5-7 business days. We also have loan programs to help with refinancing larger debts, such as commercial real estate mortgages, efficiently and at below market rates. Start an application today to determine the best option for you.
The benefits of refinancing business debt
A small business loan to refinance debt can help free up cash to reinvest in your business and reduce the overall cost of your debt as well as your monthly payments. Learn more about the benefits of debt refinance:
Lower monthly payments
A well-structured refinance can cut your monthly payment significantly. With lower monthly payments, your business can improve its cash flow and have more money to invest in itself.
Lower interest rates
Refinancing debt can also decrease your interest rate and therefore the total cost of your loan. High interest rate debt can keep you paying for longer periods of time, because the more your monthly payment goes towards interest, the less you’re paying down the debt you owe.
With a loan that has more affordable rates, you can save money and, in some cases, apply those savings to pay off your debt principal. This results in a shorter payment term.
Higher credit score
Having multiple high interest loans or maxed out credit cards can significantly impact your credit score. And a low credit score is one of the main hurdles to accessing affordable loans in the first place.
By paying off high cost business credit cards and loans, you will improve your credit score by reducing your credit utilization ratio. This means the ratio between the amount you owe vs. the total amount of credit available to you is reduced.
When to refinance business debt
How do you know when it’s the right time to refinance your business debt? Here are three indicators:
The terms of new debt will save you money
As you compare your current debt against your refinancing options, if you find that taking on new debt will save you money, it may be time to refinance. There may be more competitive rates and terms available which translate to money saved for your business.
Your current lender is using predatory lending practices
If your current loan has high interest rates, no disclosure fees and/or arbitrary payment penalties, it may be time to re-evaluate your lender. Review your refinancing options with a lender that makes access to fair and flexible financing a reality for all of its borrowers.
Your credit score has improved
An improved credit score can open the door to better loan options. It’s always worth evaluating your refinancing options to see if you qualify for a loan with better rates and terms.
The best way to prepare to refinance business debt is to complete a debt schedule. This will get you in shape for your application by providing a high-level overview of your financial situation. Your debt schedule should include the following information for each debt:
- The original lender that the debt was incurred through – this may be a bank, online lender, or credit card
- The original loan amount
- Your present balance
- The current interest rate
- Maturity date on the debt
- Your monthly payments
- Whether or not the debt is secured
Your completed debt schedule will help your Pursuit loan officer understand what the original loan(s) were used for so that we can determine eligibility. Only debt that was used for business purposes is eligible for refinance.
Examples of how businesses have refinanced high-cost business debt
Discover how you can use your Pursuit loan. See how we’ve helped other businesses refinance their business debt.
We’ll help you find the best small business loan for debt refinance
When you apply for a small business loan with Pursuit, you’ll access one-on-on support to find the best loan program for your business needs. Interested in learning a little more now? Explore our top loan options for refinancing debt.
- SBA 504 refinance: Refinance mortgages for owner-occupied commercial real estate and other fixed asset costs using the 504 refinance loan program.
- SBA 7(a) and SBA Community Advantage: These loan programs offer a longer-term option with low down payments and repayment terms up to 10 years.
- SmartLoan: Refinance up to $100,000 in debt in just 5-7 business days through an easy-to-use digital application.