BALLOON REFINANCE
BALLOON REFINANCE
BALLOON REFINANCE BENEFITS
Competitive Capital is available and Rates are still Low.
PAIN POINTS
Rates could Rise, Capital could Not Be Available, and Waiting Could be Detrimental.
Our Guided Process
Should Ask Questions (SAQ)
#1
Should I consider refinancing my balloon loan note now considering I have one to three years remaining? If yes, why?
Yes, unless you have the cash resources and planned to pay off the loan in full before the maturity date. For all remaining borrowers,
1. I would contact us to see what terms, structure, rates, covenants, and other requirements the market is bearing today.
2. Competitive capital is available today, most borrowers don’t understand that there are periods of time where capital is NOT available (Financial recession in 2008, Covid Pandemic 2020 except for PPP dollars guarantee by the government, etc.) and waiting until a few months before your maturity date could be detrimental and bad timing.
3. Bank’s industry preferences are constantly changing, and your industry could move to the non-preferable or DO Not Lend lists.
4. Your company’s operational performance for the past two years has a major impact if your loan will be approved. (Helpful hint, always apply for loans after two good years of operational performance).
5. There is a good possibility refinancing your loan could remove or reduce your current loan covenants from the new loan.
#2
Should I consider hiring a commercial loan consultant I broker? If yes, why?
Loan consultants/ brokers have regular contact with a wide variety of lenders and normally have a good understanding of the different lenders credit parameters for approval, terms, rates, amortization, etc. Our Company has a 94% success rate of obtaining approvals and 98% rate of beating the terms our client currently had or can obtain.
#1
Should I consider refinancing my balloon loan note now considering I have one to three years remaining? If yes, why?
Yes, unless you have the cash resources and planned to pay off the loan in full before the maturity date. For all remaining borrowers,
1. I would contact us to see what terms, structure, rates, covenants, and other requirements the market is bearing today.
2. Competitive capital is available today, most borrowers don’t understand that there are periods of time where capital is NOT available (Financial recession in 2008, Covid Pandemic 2020 except for PPP dollars guarantee by the government, etc.) and waiting until a few months before your maturity date could be detrimental and bad timing.
3. Bank’s industry preferences are constantly changing, and your industry could move to the non-preferable or DO Not Lend lists.
4. Your company’s operational performance for the past two years has a major impact if your loan will be approved. (Helpful hint, always apply for loans after two good years of operational performance).
5. There is a good possibility refinancing your loan could remove or reduce your current loan covenants from the new loan.
#2
Should I consider hiring a commercial loan consultant I broker? If yes, why?
Loan consultants/ brokers have regular contact with a wide variety of lenders and normally have a good understanding of the different lenders credit parameters for approval, terms, rates, amortization, etc. Our Company has a 94% success rate of obtaining approvals and 98% rate of beating the terms our client currently had or can obtain.
Links
