Business owners rely heavily on the support of their bank/lender to support their growth and transitions as a business. Many situations can occur where it is advantageous for the business to refinance their existing relationship to a new bank/lender. We are proud to be Australia’s Business finance specialist especially when it comes to refinancing a business’s finance arrangements.
Why would you want to refinance your business finances?
There are many benefits to refinancing as there are also some points to be aware of:
- The changing nature of your business can mean your existing banking relationships may no longer be the best fit for you or your business, changing to another lender can open up many opportunities for growth.
- Many Small Businesses use the same bank they have used for their personal banking. This can be advantageous in some aspects however many are not aware of the more specialised products available specifically tailored for businesses.
- Refinancing can release additional cash flow and more favourable terms for your business that may not be available from your current lender.
Some things to keep in mind:
- There can be costs involved in refinancing your debt, you should ensure that there are suitable benefits to refinancing to justify any costs associated;
- Any refinancing should be done in consultation with your accountant as there may be tax implications for changing facilities which can out weight any benefits from the refinancing.
- You should also consider not just the lending but your other banking facilities such as bank accounts, merchant facilities and ways in which any new bank can better service your needs.
- Your business utilises many types of banking products, you should consider all your needs prior to changing banks.
- Some banks and lenders offer specialised Relationship Managers whom you can contact in need. It is important to know if you require more hands on assistance from a banker and ensure that they will be accessible when you need them.