If you’re used to hearing the term “re-finance,” odds are it’s probably heard in the context of re-financing a mortgage, an auto loan, or student loans as those are the most popular types of debt that you can compile into one lump sum.
But why refinance or compile debt? What does it mean for you? This allows you to make one payment instead of multiple payments a month, with possibility a lower interest rate and payment.
That sounds good and all, but did you know that as a business you can also re-finance your debt? Over the course of this article we will outline the true benefits of debt re-financing, and how Direct Capital can help.
What are the perks?
- Lower interest. Based on market conditions at the time of the loan, interest rates can rise or fall. For example, if you signed for a loan back in 2012, chances are good that interest rates have changed since then. If they went down, then refinancing could help you lower your monthly payment.
- Flexible terms. Often when you refinance, you’re given a couple of options. You can choose to keep the same terms you currently have, shorten the term and pay off the loan sooner, or you can extend the terms and lower your payment. Ultimately, this is your decision based on your business budget, but the one thing to remember is that you have options.
- Bring notes from multiple lenders under one roof allowing for more convenience in processing tasks such as insurance, taxes and accounting.
Here at Direct Capital, we can customize debt re-financing loans to your needs. However, the one that is most-popular with our clients is the rate-and-term loan. This loan is as quick and painless as they get. One of our sales reps says of the refinancing loan, “Along with the added financial benefits, it can be a great tool of convenience for business owners. Simple tasks like accounting, insurance updates and tax preparation can become nightmares when you’re juggling multiple banks and lenders. A refinance puts everything under one roof – streamlining your operations. One phone call to make for all your needs.”
If you’re looking to compile your debt and make paying it off as simple as possible, click the form below to start the process and hear from one of our experience Finance Managers.