The Great Recession may be years behind us now, but there's no denying that it still continues to cast a long shadow. The economic downturn not only put many entrepreneurs simply out of business, but drastically tightened lending options for those owners in need of financing to stay afloat. The economy has improved by leaps and bounds since those days, but lending still remains tight, with as many as half of all applicants for small business loans in the first six months of last year being turned down.
Financing a company on credit cards is an unsustainable practice doomed to end in increasingly costly levels of debt.
Consequently, many have had to resort to using credit cards or high-interest loans to keep their companies going — a short-term fix with some serious long-term implications. Approximately 20 percent of small business owners polled by National Small Business Advocate this year said that they became "overly reliant upon credit cards or lines of credit last year." Financing a company on credit cards is an unsustainable practice doomed to end in increasingly costly levels of debt.
That's where Growth Capital Corp. can help. Our SBA Community Advantage Loan allows borrowers to, among other things, refinance their debt and regain control of their finances. Here are two reasons why debt refinancing may be worthwhile for your business:
- Lowers your interest rates: Having to pay off interest rates can keep you mired in debt for far longer than you should be. Refinancing with a lower-rate community loan can add up to serious long-term savings while also allowing you to pay off your principal amount faster than before.
- Consolidates your payments: Rather than having your time and attention split across multiple bills, each with its own interest rate and payment schedule, refinancing can streamline your life and pool all of your debt into just one payment to keep track of.
For more information on how our fixed-rate, affordable small business loans can help you refinance debt or expand your company, contact Growth Capital today.