Replacing an existing loan or lease with a new one, often to change rate, term, or cash out equity.
For example, a business owner refinances a 3-year-old equipment loan with an outstanding balance of $95,000 at its current rate of 11% into a new loan at 7.5%, lowering the monthly payment from $2,650 to $2,180 and saving over $17,000 in interest over the remaining term.
Why it matters: It allows a business to escape toxic interest rates, extend repayment terms, or unlock trapped equity to improve cash flow.
.avif)
.svg){kind=small}