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Refinancing your SME

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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.

Premier Asset Finance Limited is authorised and regulated as a credit broker (including for consumer credit activity) and not as a lender, by the Financial Conduct Authority. Registered in England, number 06453431. Registered office: 51 Homer Road, Solihull, West Midlands B91 3QJ. Premier Asset Finance Ltd is registered on the Financial Services Register under the Firm Reference Number 728589.

We are not an independent financial advisor, but we can introduce you to a panel of lenders and their finance products. We will provide details of products available from the lenders we work with without advice or recommendation, and it is for you to decide whether the finance product is right for you. We do not charge you a fee for our services, however we do receive a commission from the lender if you decide to enter into an agreement with them (either a fixed fee or fixed percentage of the amount you borrow) and different lenders pay different rates. Premier Asset Finance is a wholly owned subsidiary of Paragon Bank Plc.