If you are an entrepreneur, you might be looking at ways to ensure that you have more cash flow for your various business ventures. One way to do this may be by refinancing any loans you have. Many people may have heard of doing this with a home mortgage, but they might not know that many other types of loans can be refinanced as well.
Below is the kind of loans that you can refinance…
1. Student Loans
Student loan debt represents a financial crisis for some, and many don’t realize you can get out from under the continued payments with excessive interest, and turn to a refinance. A refinance can lead to lower interest rate, decreased monthly payments, significant savings over the life of the loan, not to mention a shorter overall time frame for repayment. Freeing up this extra savings can leave you with more cash to pursue your entrepreneurial dreams.
2. Credit Cards
You may not think of it as refinancing, but you probably receive credit card offers for 0% interest on a balance transfer all the time. This can be another great way to free up cash for yourself, but there are a few caveats. You should be sure that you can pay off the card in the time allotted for the 0% interest since the interest rate could skyrocket after the 0% period. You should also make sure that if there are any balance transfer fees, they are reasonable. With these offers in hand, another option is for you to call your credit card company and ask them to lower their rates.
3. Auto Loans
If you have a newer car, refinancing may save you money. This might not be the case if your car is older since the risk will be considered greater and the interest rates may be higher. Your lender may be unwilling to work with you if the car’s worth is not high enough. You should also make sure that you are saving money as opposed to just paying less monthly for a longer period of time.
A drop-in interest rates can be a great time to look at refinancing your home. This could be more advantageous for some people than refinancing other loans, such as student loans or auto loans, and they would still be able to use the savings to pay down those loans. However, there are costs, including fees for closing and appraisal. You should make sure that these are not higher than your savings would be.
5. Business Loans
If you already have an existing business that you have used loans to fund, you may be able to refinance the business itself. You may have taken out an initial loan at a time when you really needed it, and the rates may not have been the best. You should check to see if your business loan has a prepayment penalty that will reduce your savings from a refinance. You might also create more cash flow for your business with extended payment terms.
As you can see, there are loans that you can actually refinance. Indeed, it’s time for you to start reviewing your loans and see whether there are refinancing options available. You may be surprised that such options do exist; all you need to do is just ask your lenders.
Don’t forget: When you are considering refinancing, you should look around at the deals offered by various lenders before settling on one. Often, your current lender may give you the best deal in order to keep you around.