Interest-ing Ideas

Cost reduction doesn’t have to mean cancelling services.

A creative way to reduce your costs, at least from a cashflow perspective, is to refinance your business debt.

This is not for everyone.

If you have a loan that’s been paid down a few years but still has no end in sight, you should consider refinancing that loan into the same total length you are currently in.

For instance, if you have a 10-year loan that you are three or four years into, you can potentially refinance that loan back into a 10-year with a lower total amount.

You have earned equity by paying the current loan down, so your monthly payments should be a lot less.

The downsides to this technique are that you will have to repay loan origination fees, and it may not even work out at all if interest rates are much higher than before.

But if current interest rates are the same or less than the loan you have now, take a close look at refinancing. Considering the current rate climate, this may not apply to you – but be encouraged that there are creative ways to reduce your costs than just slashing your bills.

Onward and upward,
Simon Trask