As a bank that specializes in funeral home lending, we look at funeral home financials on a daily basis. Over the years, we’ve seen that many funeral homes have business debt that could be refinanced.
If your funeral home business has debt, you should consider these 5 benefits of refinancing:
1) Refinancing your debt can have major implications for improving your funeral home’s cash flow. Live Oak Bank can offer up to a 25-year term, which can help lower your monthly loan payment and improve cash flow.
2) Refinancing your debt with Live Oak can also be used to alleviate the burden of a balloon payment. If your lender put a lower interest rate on your loan, more often than not it is coupled with a balloon payment. Live Oak Bank can refinance notes with balloon payments and assign a proper term to the loan, so you do not have to worry about balloon payments.
3) Refinancing your debt can also help protect your business from interest rate risk in the future. If your business can support one of Live Oak’s fixed rate options, you can lock in an interest rate that is comfortable for you without the burden of needing to refinance the loan with adjustment periods or balloon structures.
4) Refinancing your debt with Live Oak can help save your business money if you are currently set up with a five-year adjustable period. Often these adjustment periods need closing items that can periodically cost your business money. Live Oak Bank has maturity dates that last the life of the loan, so there is no need to pay for the same closing costs every five years.
5) Refinancing can provide the ability to expand your business with little to no additional debt service per month. By refinancing your current debt, you will lower your monthly payment, which, in some cases, can allow you to take on a new loan to grow or expand your business. Alternatively, if your plans involve minor purchases in the future, you could simply use the monthly savings from the refinance to make the purchases.
Make plans this year to improve your business. If you currently have business debt, refinancing may be your first step. Contact our team to see if you qualify and how much you could save on your monthly payments.