Financial planning is very important, especially when you own a business. You have to plan for your future so that you can retire. You may want to think about refinancing your business in order to help get your finances in order. However, it is not always that simple.
Here are some questions you should ask before you start to think about refinancing your business.
- What are the current rates? If the rates are lower than you are currently paying, it might be worth refinancing. At even a half a point, you could be saving a significant amount of money each month when you refinance.
- Am I likely to be approved for a refinance? If your credit score is not very high and you are not likely to be approved for a refinance, you shouldn’t even try. It can actually hurt your credit if too many creditors do credit checks.
- Am I going to keep my business for a long time? There are fees associated with refinancing so if you are planning on selling your business any time soon, it might not be worth refinancing your business.
- How am I improving my business to pay off my debts? Redefine your business plan so you can pay off your debt faster. The ultimate goal of refinancing is to get out of debt. You also don’t want to need another loan as soon as you get this one paid off!
Refinancing your business could just be one step to get you and your business on the right track for your financial future. We may be able to help you find other ways to save money so that you can live the way that you want (and deserve to). Contact Chandler & Knowles CPAs today to make sure that you are going to be able to retire when and how you want!