In most cases, refinancing a commercial loan is a smart move because it helps you save money and pay off debt. If you are considering refinancing your loan, here are four tips you should keep in mind.
Don’t Rush Into a Refi Deal
As we said earlier, refinancing is usually a smart decision. However, this doesn’t mean you should rush into the first refi plan you come across. Slow down and take the time to do some research online. If you know someone who has already refinanced their loan, ask them about their experience. Use all this information to find the option that makes sense for you.
Read the Small Print
In addition to researching new opportunities, refinancing also means paying attention to the conditions of your current loan. Set aside a couple of hours to sit down and read the fine print of your contract. By taking this simple step, you can prevent many future headaches. For example, some loans have a prepayment penalty, a factor you definitely must consider before proceeding to refinance your loan.
As you get a clearer picture of the refi plans available to you, begin gathering and reviewing all relevant documents. Once you are ready to move forward with a refi plan, lenders will want to see evidence that you can repay a new loan. Some of the documents you may need to do this include:
- Balance sheet
- Bank statements
- Cash flow history and projections
- Accounts payable
- Disclosure of other debt
- Tax returns (both personal and business)
Take Advantage of New Refinancing Rules for SBA Loans
If what you need is to refinance an SBA loan, you’re in luck. Refinancing your SBA loan makes more sense than ever thanks to new refinancing rules that went into effect earlier this year. Now you can refinance a 7(a) loan into a 504 loan, a new alternative that allows borrowers to enjoy benefits like:
- Historically low rates
- Longer terms
- Change from variable to fixed rate
- Improve the financial standing of your business
If you are interested in refinancing your loan, contact Gellyfish commercial today. From SBA loans to conventional loans, our team of experts will be happy to craft a refinancing plan designed with your needs in mind.
Gellyfish: Certainty of Execution in Commercial Loans
Looking to refinance your commercial loan? Gellyfish is here to help. We offer financing solutions with the certainty of execution you need to take your business to the next level.
We are located in Riverside, and work with clients all over California and beyond. Contact us today by email (email@example.com), telephone (877-800-4493), social media (Facebook, Twitter, LinkedIn), or through the live chat on our home page to schedule a free consultation.