Key highlights
- Refinancing may lower repayments or free up cash
- Worth reviewing if your business has strengthened
- Weigh savings against switching fees and charges
- Simplify multiple loans into one arrangement
- Current loan compared against 80+ lenders
If your current bus loan no longer suits your business, refinancing may be worth a look. It can potentially lower repayments, free up cash or simplify multiple loans. Here is when it makes sense.
Why refinance a bus loan?
Refinancing means replacing your existing bus loan with a new one, often on different terms. Operators do it to potentially reduce repayments, adjust the term, consolidate several loans into one, or release equity in a bus for working capital, subject to lender criteria and your position.
When is it worth refinancing?
It may be worth reviewing if your business has strengthened since you took out the original loan, if interest rates have shifted, or if your cash flow needs have changed. Refinancing near the end of a term with a balloon owing is also common. The right timing depends on your circumstances.
What does refinancing cost?
Any potential saving should be considered against fees or charges involved in switching. A broker can quickly compare your current loan against what's available to see if a move stacks up. For the tax treatment of refinancing, check with your accountant or registered tax adviser.
How do you refinance a bus loan?
Simon can compare your current arrangement against Overdrive's panel of 80-plus lenders to see if refinancing helps. Ask for an obligation-free quote today. It's a soft check that won't affect your credit score.
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