Debt Refinance & Consolidation Loans
Struggling with high-interest debt or unmanageable loan payments? A debt refinance loan can lower your costs, extend repayment terms, and free up cash flow for your small business or franchise. Whether consolidating existing loans or refinancing costly debt, this financing solution offers flexibility and savings. LoanBox makes debt refinancing accessible, connecting you with lenders tailored to your needs. Discover how a debt refinance loan works, its SBA benefits, and how LoanBox streamlines the process to support your financial goals.
What Is a Debt Refinance Loan?
A debt refinance loan replaces existing business debt with a new loan, typically offering better terms, such as lower interest rates, longer repayment periods, or reduced monthly payments.
Purpose: Consolidate multiple loans, refinance high-interest debt (e.g., credit cards, merchant cash advances), or restructure payments to improve cash flow.
Use Cases: Lower payments on a costly equipment loan, consolidate business credit card debt into a single loan and/or refinance a short-term loan into a longer-term SBA 7(a) loan.
Benefits:
Cost Savings: Reduce interest rates.
Improved Cash Flow: Extend terms to 10 years, easing monthly obligations.
Simplified Payments: Combine multiple debts into one manageable loan.
The Easiest Way to Refinance?
Think Inside The LoanBox.
Are you looking to consolidate multiple shorter term higher interest rate business debts into one 10 year term competitive rate loan?
Are you interested in refinancing the SBA loan you got a couple of years ago into a conventional term loan?
Do you have current business debt with a lien but need an acquisition or expansion loan so you want to roll them into the same loan?
Frequently Asked Questions (FAQ)
Q: What types of debt can I refinance with an SBA loan?
A: You can refinance business-related debt, such as loans, credit cards, or merchant cash advances, used for eligible purposes like working capital, equipment, or real estate. Personal debts or loans for speculative purposes are ineligible.
Q: How much can I borrow to refinance debt?
A: SBA 7(a) loans allow up to $5 million, Express loans up to $500,000, and conventional loans vary by lender. Your borrowing capacity depends on your DSCR (1.15+), credit (SBSS 155+ or FICO 650–680), and existing debt balance.
Q: Will refinancing affect my credit score?
A: Applying for a refinance loan may result in a temporary credit inquiry dip, but consolidating high-interest debt and making timely payments can improve your score over time. LoanBox minimizes inquiries by matching you with the exact right lenders.
Q: Do I need collateral for a debt refinance loan?
A: For SBA loans over $350,000, business assets are primary, with personal real estate (25%+ equity) required if assets are insufficient. Express loans ($50,000 or less) may not need collateral. A HELOC can avoid home liens. Conventional loans often require similar collateral. LoanBox helps structure collateral to meet requirements.
Q: How long does the refinancing process take?
A: SBA Express loans can be approved in 2–5 days, 7(a) loans in 2–4 weeks, and conventional loans vary (1–4 weeks). LoanBox accelerates the process with matching and organized documentation.