01
Lower repayments over a longer term can increase the total amount repaid.
Refinance
Review what the business already owes.
Refinancing replaces one or more existing facilities with a different structure. It is worth reviewing where repayments are straining cash flow or several short-term facilities have accumulated.
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In short
Updated
What is business refinancing?
Business refinancing replaces one or more existing business facilities with a new one. It may consolidate several short-term facilities into one, or move from a short, frequent-repayment product to a longer term. Whether it improves the position depends on payout costs, the new facility's total cost and cash flow.
How it works
Refinance, explained.
A refinance pays out existing business debt with a new facility. Sometimes that means consolidating several facilities into one. Sometimes it means moving from a short, frequent-repayment product to a longer term.
Whether a refinance improves the position depends on the full picture: payout amounts, any early-repayment costs, the new facility's total cost and how repayments compare with current cash flow.
Often considered when
Where it tends to come up.
- Several short-term facilities with daily or weekly repayments have built up
- Repayments take an uncomfortable share of turnover
- A facility is nearing the end of its term with a balance still owing
- Trading has improved since the original facility was written
What lenders commonly look at
- 01Repayment history on existing facilities
- 02Payout figures and any early-repayment costs
- 03Turnover relative to total repayments
- 04Time trading and bank account conduct
- 05Tax position with the ATO
Each lender weighs these differently, and criteria change over time.
Worth weighing
Before you apply.
02
Paying out a facility early may involve fees. Get payout figures before comparing.
03
Consolidation only helps if new short-term debt isn't added alongside it.
General information only. It does not take your circumstances into account and is not a recommendation, offer or approval. Funding is subject to lender assessment, eligibility and terms.
Answers
Refinance questions
When is a business refinance worth reviewing?
Common triggers are several short-term facilities with daily or weekly repayments, repayments taking an uncomfortable share of turnover, a facility nearing the end of its term with a balance still owing, or trading that has improved since the original facility was written.
Does consolidating business debt reduce the total cost?
Not necessarily. Lower repayments over a longer term can increase the total amount repaid, and paying out existing facilities early may involve fees. Get payout figures and compare the total cost of both positions before deciding.
How does Tennanova help with a business refinance?
Tennanova's Funding Check shows whether a business refinance is among the funding structures worth exploring for your business, based on your answers. It involves no credit enquiry and is general information, not an offer or approval. Tennanova is not a lender and does not provide credit.
Funding Check
Know what may fit before you apply.
Tell us about the business. We'll show you the funding structures that may be worth a closer look, then you decide whether to go further.