PROFITTHEORY

Business refinancing

Refinancing business debt: when it makes sense

Refinancing replaces existing debt with a new loan, usually to lower the payment, extend the term, fix a rate or consolidate expensive short-term debt. It makes sense when the savings outweigh prepayment penalties, closing costs and any extra interest from a longer term.

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Estimates only. Results vary. No guarantee of approval, rates or savings.

Profit Theory is not a lender. Providers make all funding decisions; approval is never guaranteed.

Good reasons to refinance

  • Replace daily or weekly payment advances with monthly payments
  • Consolidate several loans into one
  • Lock a fixed rate
  • Extend a term to improve cash flow during growth

What to check

Prepayment penalties on current loans, fees on the new loan, total interest over the new term, and whether collateral or guarantees change. Lenders also review whether the business has paid existing debt on time.

Run the numbers

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$
% APR

Use a rate you were quoted, or test a range. Not a quote.

years

10 years / 120 months

% of loan

Estimated monthly payment

$3,234.94

Total interest

$138,193

Total repaid

$388,193

Fixed-rate, fully amortizing estimate. Excludes variable-rate changes, prepayment terms, guarantee fees and closing costs unless entered. Not an offer or approval.

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Estimates only. Results vary. No guarantee of approval, rates or savings.

Talk with a financing specialist

Common questions

Can I refinance an SBA loan?

Sometimes, into another SBA or conventional loan, subject to program rules. Confirm with the lender.

Does a longer term save money?

It lowers the payment but often increases total interest.

Will refinancing hurt my credit?

An application may involve a credit check. Ask the lender how they pull credit.