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Refinancing
The ideal solution to lower your monthly credit costs
Corporate refinancing is a financing product suitable for companies with one or more existing business loans, which want to take advantage of new financing that offers more favorable terms and/or conditions. In such a situation, companies will settle their current debt outstanding through issuing new debt with more favorable terms or conditions. With a refinancing loan, companies have a great opportunity to obtain additional cash amounts supporting their needs.
Let’s take a practical example: your company currently has CHF 500,000 remaining on their current loan for 5 years at 5% interest rate. In such a situation, the monthly installment payments would be CHF 9,410. You want to reduce this monthly amount and ask our experts what may be possible. Our advisers will analyze various options for you in details and provide a refinancing proposal. If for example we assume the best possible rate is 3%, for a duration to 5 years, the monthly installment payments for the new loan will be CHF 8,975, which will reduce your monthly spending with CHF 435 and the total cost of the interest with CHF 26,100.
The most common reasons to refinance a debt are:
To take advantage of better interest rate terms and less contract restrictions
To reduce the monthly repayment amount by entering new debt with longer terms.
To switch from a variable-rate debt to a fixed-rate debt or vice versa (commonly done in changing interest rate environments)
To increase the loan amount due to the good financial health of your company.
In summary
Although refinancing existing debt is an attractive option, it may not be feasible in some cases, as each application is unique and needs to be analyzed carefully. Prestaflex experts have the knowledge and experience to find a tailor-made solution for you.
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