How to Refinance a Business Loan

Business loans can typically be refinanced, just like mortgages or other personal loans. When you refinance, you apply for a new small-business loan — ideally with more favorable rates and terms — in order to pay off your existing debt.

If you can save on borrowing costs, refinancing may be a good option for your business. Refinancing isn’t right for all situations, however, and could create a cycle of debt if you’re already struggling to make payments.

Here’s everything you need to know about how and when to refinance your business loan.

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What does it mean to refinance a business loan?

Refinancing a business loan involves applying for a new loan, from the same or a different lender, to pay off your existing debt. In general, the goal of refinancing is to save your business money and streamline cash flow.

Ideally, you should achieve this goal by refinancing to a loan with more desirable terms, such as:

A longer repayment period.


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This article was written by Randa Kriss and originally published on