FINANCE SOLUTIONS FOR SME CLIENTS
Refinance/Debt ConsolidationWhy use PMA to refinance or consolidate your client’s debt:
- They need to refinance or consolidate existing business loans
- Their current loan term is about to expire and need more time
- They need to consolidate multiple debts
Refinance & Debt Consolidation Loan Terms
Up to $5M (1st Mortgages) & $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 or 2nd Mortgage
Refinance & Debt Consolidation Loans
Refinancing a business loan involves using a new loan to pay off an existing business loan or debt. The borrower then continues to make payments on the 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 a property. By consolidating multiple debts into one loan, the borrower only has to worry about paying off a single loan rather than making repayments towards several different loan amounts. This can free up more time for the borrower to put back into their business.
Refinancing can also allow borrowers to access the equity they have built up in their business over the years to fund future spending or upgrades.
Refinancing a business loan can help a borrower access negative gearing and depreciation benefits. However, it’s best to speak to an accountant or a tax specialist for detailed advice on how this would work.
If a borrower’s current business loan is due to expire, refinancing can allow them to pay off the current loan and give them more time to arrange the payment of the new loan.