In today’s rough economic time, businesses everywhere are being told how they will be able to save money to get them through this recession.

Even with the countries recession it is possible to save money if you are a struggling business. One thing that can be done is to try and renegotiate your deals with your vendor or contractors. Layoffs may also help but not recommended unless there is no other option. You can also look into outsourcing if possible to get the work done with less money.

All of this going down while lenders are also tightening their belts as well. Lenders are also having a difficult time during this rough economic time. The lenders are not giving credit to many people and making it hard for some to be approved and in some cases even closing lines of credit altogether. However there is another option that can help, refinancing.

It is common for people to only think of refinancing when they see rough times ahead like a large payment or when the possibility of defaulting altogether. Since approaching a lender or bank can seem intimidating many do not even think of this as a possibility.

This way of thinking however can cost you thousands in savings, which can mean the end of your business or loss of possible growth. It’s better to get help when you can than risk the possibility of not being able to get any when you do need it.

Plus if you have a feeling that your current lender can be up to something, mortgage refinancing is a great tool to get around that.

Keeping your business ahead and on top means always keeping an eye open for opportunities that can possibly save you money and time. Now is a great time for businesses to refinance their current loans. We don’t just mean your businesses loan but any loans you may have on equipment or other things you use for your business.

Simple example:

Let’s say that you took a loan out for equipment for your business 18 months ago. Lets also say that the loan you took out was for $80,000 at 8% for the next five years. If were to refinance now you could do so at 7% and save almost $500 monthly without extending the loan terms. This can help you stay out of trouble and avoid layoffs, more debt etc.

Although there is no sure method or quick fix to saving your business in one shot doing a combination of the above can be the answer to keeping your business alive and kicking. Cut costs were you can, refinance when you can and you can save money and possibly open a new opportunity today and down the future.

-M Petrone

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