We currently see lots of people promoting refinance. Now while it can be the solution for releasing much-needed funds, reducing monthly payments, or both, it’s not right for everyone.
Below are some of the reasons you might not want to refinance:
- You don’t need the money – first and foremost stretching the term or adding finance again can increase the amount you repay.
- You plan to sell the asset you are raising funds against – you will possibly have to pay some of the interest when settling.
- You are raising cash due to cashflow pressure and this will increase your monthly commitments without adding revenue.
- If you want to use the funds to purchase something else – it might be cheaper to use another type of finance. It’s surprising what can be financed.
That being said, refinancing can be a solution to release equity from assets that still have a productive life with you and reduce payments by increasing the term.
We strongly believe that a healthy cash flow is one of the most important parts of business.
So, if you’re looking to release the profit hidden in your business – call our experts direct on 01908 92 62 62