Refinancing a Tips from the Experts

Start Early – refinancing is more complex and takes longer now than it did in the past. You may need to consider that it could take as long as four to five months and in certain circumstances even longer.

Get expert advice, preferably from someone with hands on experience of the banking system.

Your adviser should contemplate an approach to your existing lender in the first instance – they “should” know your business best.

Working with your own Bank and NOT against it can be beneficial but in many instances the relationship may have been soured.

Shopping around may not always be productive for you. It is important that your adviser obtains as MUCH information from you as possible and be in a position to compile and submit a professional application on your behalf.

Provide good, accurate and credible financial data, in the form of statements and projections. Figures require to be substantiated. You need to explain why you need the loan – and how you are going to generate the cash to pay it back. “Serviceability” is the key to any proposal.

If you need to make cutbacks to preserve cashflow, make sure that all those involved in the business, Directors, and Partners are “sharing the pain” in terms of their own pay and dividends.

Your adviser should always consider alternative or supplementary sources of finance. The overdraft is not only and indeed not always the “only deal in town”.

Bill Christie FCIBS
Chartered Banker
Director : CER Business Finance Ltd.

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