Refinancing a business loan essentially allows you to trade one loan for another that works better for your financial situation. You may be able to secure lower payments, different repayment terms or lower rates and fees.
Our Business Loans Refinance Calculator can help you decide if refinancing your business loan is the right move. All you need is current information about your business and existing loan to find out if you’re eligible for a rate reduction.
First, enter the month and year you started your business. Then, write in how much gross revenue you generate on an annual basis. Gross revenue is the total amount of money your business earns before you deduct expenses. Your loan offer would depend on how much your business earns because the lender would want to ensure your business makes enough to repay the debt.
Then, select the range in which your personal credit score falls. You may be eligible for more favorable repayment terms and lower rates and fees if your credit is good or excellent. However, you may not be able to reduce your interest or improve your terms if you have fair or poor credit.
Next, you would need to input information about your current business loan. Enter your starting loan balance when you first took out the loan and the repayment term that was assigned. Then, add the total repayment amount, which includes interest, fees and any other costs associated with the loan. You could find this information in your original loan agreement. The repayment amount will likely be higher than the amount you originally borrowed.
After your information is in the correct fields, the calculator will determine if you could get a rate reduction by refinancing your loan. If you are likely to reduce your rate and possibly save money, you can shop for small business loans and view free offers in the LendingTree marketplace.