In today’s tough economy business are being promised money saving opportunities at every turn. They are being overloaded with the promise of less over head cost or the chance to reduce their everyday expenses.

Businesses do have some options to help get them through this rough economy. First of all the business in question can renegotiate with their suppliers and venders, the company can cut out everything except for the things that keep their place running. Another step that can be taken by a struggling business is to layoff some of its workers. Although this is not ideal you have to act before you sink or fail altogether. Businesses also have the option of outsourcing some of the work they need done in order to save some money.

This is all being done even though lenders and banks are making it more and more difficult for anyone to get a line of credit. In today’s world it is very difficult to get a line of credit to keep your business going much less build a new one. Some banks and lenders have even closed some lines of credit altogether. However there is the option of Refinancing.

The majority of people get a loan and only think of refinancing when they are aware of a increase in the loan or if they are having trouble and about to default. What happens is that business owners generally don’t rethink their loan as long as they are on time making their payments, they don’t want to deal with the hassle of approaching a bank or lender to look into refinancing. Since the process of refinancing or any loan really is stressful and long many don’t want to go through with it so they can avoid the headache.

The problem with not refinancing until you are in need is that it will much more difficult to find a lender or bank that will be willing to do business with a struggling business owner. Another reason being that once you refinance you will have better terms in with the new loan and can save hundreds of dollars a month. If you wait to refinance your losing out on tons of possible savings that can be used to improve your business and stay alive through and past this rough economic state.

A great way to avoid a possible increase in your monthly payments is to refinance. So if you are expecting an increase from your lender you can avoid it by refinancing on the loan instead.

Running a successful business includes always keeping your eyes and ears open for new money saving opportunities. These days’ lenders are looking for customers so they can grow, now is the best time to refinance your business loan than ever before. When talking about refinancing it is not limited to your business or home loan it also includes any lease or loans that you have on other equipment that you use to run your business.  

For example if 18 months ago you bought equipment for your business with a loan and lets say that the loan was for $80,000 at 8% interest rate over the next five years. If you were then to refinance that same loan at 7% for the same five years you can potentially save $500 a month. Once you have refinance and start seeing the money you are saving you can use it to keep your business running and even expand if your business if you wanted. You can also use the savings to reduce your debt and avoid any layoffs of any of your employees etc.

Although there is not solid answer to save your business, if you refinance and save money at every possible chance you can stay afloat in this tough economy. Cutting your businesses costs, consolidating your debt and getting more out of your customers you can save your business and survive this economic struggle.

-M Petrone

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