If your profitability is struggling due to high monthly payments from existing loans and leases, or you’re perhaps behind on demanding short term payables, refinancing your loans can reduce monthly payments, increase cash flow, and keep your business running smoothly.
When you refinance, you take out a new lease or loan—typically with lower monthly payments. Depending on your needs, your new loan could come with further benefits like additional funds for day to day expenses and a payment schedule that matches your business operations.
Tough economic times are putting pressure on many Alberta businesses, but there are always options. Patron West works with a wide range of lenders to offer refinancing solutions that are specific to each company’s needs, whether that’s alleviating the stress of high payments or freeing up capital so your business can “ride out the storm” of an economic downturn.
Benefits of Refinancing:
- Increase Monthly Cash Flow
- Stabilize Your Business
- Lower Monthly Payments
- Buy Yourself Time
- Additional Funding
- Better Payment Schedule
How Does Loan Refinancing Work?
Traditional banks are unlikely to allow companies that are struggling or heavily invested in a declining market sector to refinance, and that’s where Patron West comes in. Not only are we able to offer solutions to higher risk borrowers, but our loans are often more stable and secure than bank loans because they don’t include crippling “Due on Demand” or “General Security Agreement” clauses.
To determine your eligibility for refinancing, we’ll look at your assets, liabilities, and equipment, and run a credit check. Having a bad credit score won’t necessarily rule you out for a loan, but it may mean you need to provide more collateral or the interest rates may be higher. For those who are eligible, refinancing packages will consist of a term loan to pay off the original debt, and possibly even additional operating funds so you can keep on top of capital expenses and running costs.
Ready to get started? Apply for Refinancing Now!
We’re committed to helping our clients overcome tough economic times, take control of their finances, and grow their enterprises. Learn more about our personalized approach.
Refinancing Case Study: Oil Field Services
Patron West can make a difference. Our client, an Oil Well Services company, saw a 25% drop in billing rates. This drop in sales put the bank financing in breach of convenant and monthly payments became too high. None of their existing lenders wanted to help – even with their company’s strong equity!
Patron West was able to find a lender to refinance all of the debt. Bringing payments down nearly 70% for the first 12 months, stabilizing cash flow, and making the company cash flow positive.
How come Patron West can help me and the bank won’t?
Large banks have very stringent application processes and strict regulations governing eligibility for refinancing and loans. This means they often turn down applications they consider to be higher risk, for example, if a borrower does not achieve the prescribed financial ratios or the client is working in a challenged market sector. Unlike large banks, Patron West works with a wide range of lenders with different attitudes to risk and is able to offer a variety of options to match the needs of most borrowers.
What Do Brokers Actually Do?
As brokers, we work independently to find you the “best in market” finance options from a range of lenders. We understand the language and viewpoint of the lenders, which enables us to help our clients obtain financing and terms that they likely wouldn’t be able to negotiate on their own. In addition, you can stay focused on running your business while we work with you to determine which lender and loan schedule is the best suited to your needs.
Do you Offer Seasonal or Variable Financing Repayment Options?
Yes! Leases and loans can be structured to suit your cash flow. This could be lower payments for a whole season, a couple months, or simply during the ramping up period for new equipment purchases. We can help you take control of your monthly payments with seasonal or variable repayment options and finance scheduling terms that make sense for your business.