Equipment Refinancing

Equipment refinancing is replacing existing borrowing terms on equipment that is already owned by a business by securing a new loan or financing agreement. This gives businesses new terms, such as extended repayment periods and/or lower interest rates, that can lead to reduced monthly payments, ultimately improving cash flow.

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The reason many businesses with equipment loans might look to refinance them is that it can improve their overall debt structure and reduce current lending costs, giving business owners a boost in cash flow for over potential equipment or project needs.

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Equipment Refinancing Benefits:

Business owners can at times feel stuck with what their current equipment loan structure is but with refinancing, you can capitalize on a few benefits that’ll help your overall financial situation.

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• Lower monthly payments: By refinancing your equipment loan, you can potentially lower the interest rates and/or extend the repayment period which helps reduce your monthly payments.​​

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• Improved terms: Your original term structure does not have to be set in stone. By refinancing, you have the ability to negotiate for more flexible terms and structures that favor your current financial position.​

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• Access to capital: By lowering your monthly payment by refinancing you can gain access to capital that previously was tied to those higher monthly payments and utilize it for other project or equipment needs.

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• Avoid balloon payments

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• Exercise purchase options on leased equipment​

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• Consolidate debt

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Equipment refinancing gives you the ability to improve your current financial position while keeping the equipment you need to complete projects. It allows for growth and expansion by freeing up capital for those two initiatives.

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Contact us Today!

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