Like individuals, businesses are faced with rising energy bills and wider inflation, placing strain on their finances. According to a recent article in Business Leader, 58% of SMEs state that rising costs are impacting net profit margins.

 At Premier, we provide creative and competitive funding solutions for UK businesses, from capital to invest and grow, to support through financial hardships.  

As inflation bites, refinancing your assets and existing debt is one avenue SMEs could explore to help improve cashflow and we have seen an increase in enquiries from clients regarding refinance.

We’ve outlined some of the benefits refinancing can deliver and the reasons why it can give your business more financial flexibility and improve cashflow.

Reducing payments

By agreeing revised payment terms, monthly payments can be reduced, placing less strain on the day to day running of a business. This doesn’t involve increased borrowing, but instead spreads your repayment commitment over a longer period.

Consolidating your debt

If you have more than one loan or existing debt attracting high rates of interest, consolidating them could allow for an overall reduction in costs.  The time and money spent trying to organise and service high interest debt can now be put back into running the business. In some circumstances, consolidating the debt can also have an overall positive impact on the business’s credit score.

Leveraging your equity

Refinancing assets with little or no debt attached to them, can instantly give your company a cash boost, which can create a buffer or a financial safety net for when the unexpected hits. When you refinance assets in this way, you access some of your business’s equity. At a time of rising interest rates, refinancing assets that represent strong forms of collateral may prove a more cost efficient means of raising capital than taking out new unsecured borrowing.

We’re here to help find the right solution for your business and your specific requirements. To find out more about how we can assist you, do not hesitate to get in touch.