Corporate refinancing is a financing product for companies with one or more existing business loans that want to have new financing with more favorable conditions. In such a situation, companies will settle their current outstanding debt by issuing new debt with more favorable conditions. With a refinance loan, businesses have the opportunity to borrow more cash to support their needs.
Let's take a practical example, your company currently has CHF 500,000 left on the current loan of 5 years at 5% interest rate. In such a situation, the monthly installments would be CHF 9,410. You would like to reduce this monthly amount and ask our experts if it would be possible. Our consultants will analyze various options in detail for you and will provide a refinancing proposal. For example, if we assume that the best possible interest rate is 3% for a period of 5 years, the monthly installments for the new loan are CHF 8,975, which will reduce your monthly expenses with CHF 435 and the total cost of interest with CHF 26,100.
The most common reasons to refinance are:
To take advantage of better interest rate terms and fewer contract restrictions.
To reduce the monthly repayment amount by taking on new debt with longer terms.
To switch from a variable-rate debt to a fixed-rate debt or vice versa (often done in an environment with changing interest rates).
To increase the loan amount based on the good financial health of your business.
While refinancing existing debt is an attractive option, it is not feasible in a few cases because each request is unique and must be carefully analyzed. The experts at prestaflex have the knowledge and experience to find a customized solution for you.
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