SMALL BUSINESS FINANCE
Refinance/Debt ConsolidationWhy use PMA to refinance or consolidate debt:
- You need to refinance or consolidate existing business loans
- Your current loan term is about to expire and you need more time
- You need to consolidate multiple debts
Refinance/Debt Consolidation Loan Terms
Up to $5M (1st Mortgages) or $2M (2nd Mortgages)
Up to 75% of the ‘as is’ value (max. LVR of 75% for major metro residential property, other security at lower LVRs)
1st & 2nd Mortgage
Refinancing a business loan involves using a new loan to pay off an existing business loan or debt. You then continue to make payments on your new loan as usual.
It is generally used to consolidate multiple debts into one business loan, refinance to a loan with a lower interest rate or to access the equity in your business. By consolidating multiple debts into one loan, you only have to worry about paying off a single loan rather than making repayments towards several different loan amounts. This can free up more time for you to put back into your business.
Refinancing can also allow you to access the equity you have built up in your business over the years to fund future spending or upgrades.
Refinancing a business loan can help you access negative gearing and depreciation benefits. However, you'll need to speak to your accountant or a tax specialist for detailed advice on how this would work.
If one of your current business loans is due to expire, refinancing can allow you to pay off the current loan and give you more time to arrange the payment of the new loan.