Securing a Streamlined £175,000 Debt Consolidation Refinancing Agreement for Successful Business
How to consolidate multiple debts with efficient refinancing
When a business that had multiple debts approached Rangewell for advice on refinancing, we were able to identify a route to consolidating all of their debts into a single repayment that offered superior rates and terms. This, in turn, meant the client benefitted from easier debt management and a more affordable loan overall.
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When a business first starts up, the hectic nature of the market means we often find ourselves taking out multiple loans just to keep things going. From your standard overdrafts through to commercial mortgage agreements, asset finance, business loans and more, there are lots of products available to help fund new businesses – but managing them all can be a headache.
Businesses across all sectors struggle when they have too many individual loan agreements across multiple lenders. Not only does it make it harder to manage your repayment schedule and cash position, but also causes challenges when you want to grow your business.
For a client of ours who approached Rangewell to help with debt consolidation, their previous finance agreements were all taken out when the business was still ‘finding its feet’. After they’d strengthened their business position and solidified their offering and profitability, they decided to explore the credit market to see if they could find a better option.
Why was there a problem?
When the business in question was new to the market, they struggled to find funding. To gather the cash they needed, they had to take on multiple agreements, which all carried higher interest rates. It is common for new businesses to take on more restrictive finance agreements, as lenders must balance the risk of a new business and can only offer certain agreements as a result.
However, rather than simply accepting these rates and debts as permanent, the client realised that having to repay each individually was not efficient and they wanted to explore a way to consolidate them into a single repayment.
The new loan would be negotiated based on the business’s most recent performance metrics and far more robust history, having operated for four years and grown even during the pandemic.
Why we were able to help
When the client approached us, they had a total debt of £112,000 which was split between three lenders. We were able to help them build an application that showed their business in the best light, with clear evidence of business growth and strong financial performance.
We took these financial projections to a range of lenders to assess which rates and terms would be offered. We then advised the client and worked with them to choose the optimal agreement – which was decided to be a loan for £175,000. This loan granted a new cash injection for the client to use, but also reduced their interest rates by half by extending the repayment period.
In summary, the client’s debts went from being repaid across three lenders with varying interest rates and points of contact to a single lender that offered more affordable interest rates and an added cash injection for the business to utilise.
Refinance and consolidate debts
If you’ve got multiple debts in place and you’re struggling to balance repayments and interest rates across each, why not explore debt consolidation? If you’re in a good business position thanks to growth or financial success, you can benefit from superior rates and terms from a single lender who agrees to take on all your other debts and streamline repayment.
Rather than go it alone and try to negotiate in the dark, choose Rangewell. We’ll work with you at no cost to help find the right lender and credit agreement that takes care of your multiple debts and results in a single, more manageable repayment.
Visit debt consolidation to learn more about the process.