Refinancing a Business Loan: When It Makes Sense, According to Ben Blacker

Many business owners set up their finance once and never look at it again. Years later they’re still paying a rate, or living with terms, that no longer suit the business. Ben Blacker, Managing Director of Blacker Consulting, says a regular review of your lending is one of the simplest ways to free up cash.

“Your business has changed since you took out that loan. Your finance should keep up with it,” says Ben.

Signs It May Be Time to Refinance

• Your rate is well above what similar businesses are paying. If your business is stronger now than when you borrowed, you may qualify for better pricing.
• Repayments are squeezing cash flow. Spreading the debt over a longer term, or restructuring it, can ease the monthly pressure.
• You have several loans with different lenders. Combining them can cut fees and make the business easier to manage.
• Your lender won’t support your next step. If you need more funding to grow and your current bank isn’t interested, another lender may be.
• Your security is tied up. Some arrangements hold more security than they need to, often the family home. Refinancing can release it.
• A fixed rate or term is ending. This is a natural point to review, without break costs.

When Refinancing Doesn’t Make Sense

Refinancing isn’t always the answer. Ben encourages clients to look at the full cost, not just the headline rate:

• Break costs on fixed rate loans can wipe out the savings
• Application, valuation and legal fees add up
• A longer term lowers repayments but can mean paying more interest overall
• Moving lenders means starting a new relationship, which takes time to build

“Sometimes the best outcome is a better deal with your existing bank. A well prepared review gives you leverage either way,” Ben explains.

How to Approach a Refinance

Ben’s advice is to prepare as if you were applying for new finance. Have up to date financial statements, a current debt schedule, and a clear explanation of what you want to achieve: lower repayments, more funding, or released security. Then compare options on total cost, flexibility and the quality of the relationship, not only the rate.

How Blacker Consulting Helps

Ben reviews your current lending, works out whether a refinance stacks up after all costs, and presents your business to the right lenders. Drawing on more than 20 years in banking, he knows how lenders assess a refinance and what makes them compete for good clients.