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Managing Your Business Debt: Refinancing Options to Keep Growing

business debt

If high-cost debt is troubling your business, it might be time to consider refinancing. The macroeconomic outlook suggests now might be the best moment to do it, too. Consider the following:

Why Do I Need to Refinance My Business Debt?

The benefits of refinancing your current business debt are multifold. It can alleviate stress by lowering your monthly payments, but it can also help your business continue on a positive trajectory. By refinancing, you can free up cash to continue investing in your business.

A refinance will help you improve cash flow immediately, and it will give you the chance to take advantage of opportunities. Whether it’s buying new equipment, expanding your premises, employing a new hire, or investing in new technologies, your business can turn the bend toward managing debt more effectively while keeping a growth strategy in mind.

Is Now a Good Time to Refinance Business Debt?

Inflation isn’t helping with business expenses. Whether it’s the cost of labor, materials, or energy bills, many are under pressure because of rising costs. The Federal Reserve’s response has been to hike rates to try to soften the blow. 

And more increases are likely on the way, with a 3.75% to 4.00% target being set for mid-2023. So what does this mean? The cost of debt is likely to rise for businesses for the foreseeable future. Fortunately, refinancing solutions are available — namely, Small Business Administration (SBA) loans.

What Is an SBA 7(a) Loan?

SBA 7(a) loans are built to serve the capital needs of small and midsize businesses. The loans are designed to financially support businesses and startups in qualifying industries. They provide funding of up to $5 million, allowing companies to invest in their own success. Loan terms can be as long as 25 years, making 7(a) loans extremely flexible.

Why Is Refinancing Through the SBA 7(a) Loan Program Useful?

Consolidating your loans in one place will help you reduce risks and get on top of your finances straight away. You can bring your budget under control while continuing to grow your business. You can avoid stagnation or, worse, decline, while securing the capital you need to accelerate your business growth. 

Additionally, you’ll get the chance to save more and improve your cash flow. Here are some of the benefits an SBA 7(a) loan can bring to your business:

  • Take advantage of lower interest rates.
  • Make lower monthly payments.
  • Keep your credit quality in check with the credit bureaus.

Who Is Eligible for the SBA 7(a) Loan Program?

SBA 7(a) loans are designed to meet the needs of for-profit small businesses in the U.S. Those with no delinquencies on their current debt obligations and a reasonable need for the loan are good candidates.

As one of the most versatile loan options, SBA 7(a) loans are suitable for almost any industry. Fountainhead has more than 380 years of combined experience working with all varieties of clients and organizing the best terms to suit their needs.

If you’re interested in seeing whether you could qualify for an SBA 7(a) loan, visit our page here, which shows the eligibility requirements.

Where Can I Refinance My Business Loan?

Fountainhead prides itself on its ability to meet the funding needs of small to midsize businesses. Our business loan refinancing processes are designed to make your experience as easy as possible. You can apply online or contact us at 800-770-1504 with any queries. If you’re interested, here’s a little more about our options.

Fountainhead’s SBA 7(a) loans come with a few specific perks:

  • Personalized: Longer loan terms are available (up to 25 years).
  • Flexible: There are no balloon payments and lower down payments than conventional financing. 
  • Affordable: Rates can range from 7% to 9.25%
  • Accessible: $250,000 to $5 million in capital can be provided for immediate business expansion.
  • Client-focused: There are minimal early-payment penalties (if any), and conveniently scheduled payments.

Final Thoughts

We want your business to achieve more with the right resources. With an SBA 7(a) loan through Fountainhead, there’s no limit to what you can do. Make the move toward refinancing today and start investing money back into your business, where it matters. Get in touch with a member of our team today and see what can be done to refinance your business debt.