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
Read:
Types of Business Loans You Can Refinance
Pros and Cons of Refinancing Small Business Loans
Read:
Your Guide to Taking Out a Business Loan
Qualifying for a Business Refinance Loan
Read:
Is Refinancing Small Business Debt the Right Move?

Content: Pros and Cons of Refinancing Small Business Loans
Business owners may enjoy several distinct benefits when refinancing a business loan. Ference says the biggest advantage is the potential to improve business cash flow. "The ability for a small-business owner to consolidate his or her balance sheet is extremely important, especially for small businesses that have grown rapidly and are looking to increase their organic cash flow," she says. " You get a cash flow benefit when the refinancing of your debt allows for a lower monthly payment." The cash flow struggle is real for many business owners. 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: