Business Finance Services Australia

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All businesses should periodically review their funding to ensure that it continues to meet the requirements of the business and provides for the future.

 

At BFSA we spend a lot of time working with new and current clients to review current facilities and advise if better options exist.

 

In many instances we have been able to restructure/refinance loans to reduce monthly outgoings and/or reduce interest payable. In other situations, established businesses may wish to reduce the amount of security provided and this can certainly be looked at (generally, you will find your own Bank wont like this as it is increasing their level of risk).

 

While it seems strange, a current lender these days is less likely to offer you their best current deal as it would mean reducing the income earnt from you. Banks and Lenders are in business to make a profit as well and unless you can improve their view of your risk grading then they are not keen to reduce their margins. A new lender doesn't have that same thought as they are not currently earning an income from you and accordingly may offer a better deal to win your business away from a competitor.

 

Of course, you would only refinance loans if it made financial sense to do so and all the various factors need to be considered including interest rates, loan types, fees, security required and term of repayments. Very importantly, the total repayments must be in line with your cashflow. I would ALWAYS recommend that you request the longest possible loan term in order to minimize your monthly repayments. The loan facility should have flexibility for you to pay higher repayments if YOU wish to and that way you are in control rather than the Bank.

 

Structuring the loans properly is very important and we would look at the available security and look to engineer the mix of facilities whether it be a home loan, business loan, overdraft, cashflow or inventory lending or equipment finance.

 

If you want to discuss a refinance, we are simply a phone call away on (02) 6368 7161

or email:————-admin@businessfinanceaustralia.com

Refinancing your Loans.