There are different purposes for refinancing an existing commercial real estate loan to benefit your business. One of the main reasons is to secure a lower interest rate with a new loan through Commercial Lending Corporation. Any time interest rates drop, you should seriously consider whether the lower rate would help to reduce your monthly payments, as well as the total amount paid back on the loan.
Refinancing does provide you with a few different options, as far as the length of the loan. Some companies decided to refinance for a longer term at the lower interest rate. What this does is reduce the monthly mortgage payment amount and leave more cash left over each month to be used for other business purposes, such as marketing, or research and design. Another option is to refinance and keep the remaining amount of time left as your current loan. Using this option, along with a lower interest rate, saves your company money because you end up paying less interest over the life of your loan.
Another reason for refinancing your current commercial loan with help from Commercial Lending Corporation is to draw out equity in your property to invest in your business. For instance, if you are developing a new product, you frequently need large cash reserves in order to provide the necessary funding for the entire project. Tapping into your available equity allows you direct access to the cash you require. Depending upon the lower rate of interest, your monthly payments could stay around the same amount as you are currently paying.
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