Title: How to Refinance a Small Business Loan | US News
Headings: How to Refinance a Small Business Loan
How to Refinance a Small Business Loan
How Business Loan Refinancing Works
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Types of Business Loans You Can Refinance
Pros and Cons of Refinancing Small Business Loans
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Your Guide to Taking Out a Business Loan
Qualifying for a Business Refinance Loan
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Is Refinancing Small Business Debt the Right Move?

Content: In a February 2019 Kabbage survey, 51 percent of business owners said they sometimes sacrificed paying themselves for months at a time to smooth the flow of cash in and out of their businesses. Freeing up room in your business budget can be helpful if you're hoping to pay yourself regularly or to build up a cushion of savings for your business. Additionally, the extra funds can help you keep pace with rising overhead costs or cover necessary business purchases without taking on additional debt. Refinancing at a lower interest rate can yield savings in a different way if it reduces the total cost of borrowing and allows you to pay off the loan faster. On the con side, a few considerations: Possible prepayment penalties or fees when paying off the old loan early. The effect of applying for a new loan on your credit score. The current interest rate environment. Lenders charge a prepayment penalty when a loan is paid in full before the loan term ends. This fee, which is typically a percentage of what you borrowed, allows the lender to recoup some of the interest charges it can't collect when you repay a loan early.