By undertaking a detailed review of the client’s current borrowings and carefully plotting a better route forward, it became clear that a refinance of the existing loans was the best option. This would allow us to reduce the interest rates charged and movethe debt over to a more affordable monthly payment.
The refinance involved transferring the debt onto a new unsecured business loan, over a term of five years. This would allow the client to improve cash flow and avoid the need to keep taking on new debt due to a lack of working capital throughout the month.
After comparing rates from across the market, we quickly identified a lender and were able to issue indicative terms to the client. They were happy to proceed, and the application was fully submitted to the lender.
The loan completed in under a week, releasing a small amount of money to expand the business and the rest was used to repay the existing debts.
- Loan Amount – £80,250.00
- Interest Rate – 21.9% per annum
- Term – 60 months (5 years)
- Monthly Repayment – £2,211.86