WHY REFINANCE
Is Your Current Debt Structure Hurting You?
Business financing needs evolve. What made sense 18 months ago may be costing you dearly today.
Reduce Payment Pressure
If your credit score improved or market rates dropped, refinancing can dramatically cut your cost of capital.
LowerMonthly cash outflowExtend Repayment Term
Spread payments over a longer period to free up monthly cash flow for operations, hiring, or growth.
More PredictableMonthly Payment StructureCash-Out Refinancing
Access the equity in real estate you own to fund expansion — usually up to 75% of today’s value, 90% with an owner-occupied SBA 504 refinance.
Up to 75%of value (90% SBA 504)Learn moreConsolidate Multiple Loans
Merge several high-rate obligations into one simple payment, reduce admin burden, and negotiate better terms.
1 paymentinstead of several
6 Signs You Should Refinance Now
- You have a merchant cash advance or short-term loan priced with a factor rate
- Daily or weekly payments are taking a large share of each day's sales
- You've taken more than one advance at the same time (stacking)
- Your credit or revenue has improved since you first borrowed
- You're struggling to make payroll or pay suppliers because of debt payments
- A loan matures within a few months and you can't pay it off in full
REFINANCING OPTIONS
Which Loans Can You Refinance?
- Merchant Cash AdvanceHighest costFactor rates of 1.15–1.5 work out to roughly 30% to well over 150% APR, depending on how fast they are repaid — usually the most expensive debt to replace first
- Short-Term Business LoanCommonOften used as bridge financing — moving to a longer, cheaper loan lowers the payment
- Equipment Loan (old rate)OpportunityIf equipment is still valuable, lenders will refinance on improved terms
- Commercial Real EstateMaturityA balloon coming due, a floating rate to fix, or equity to take out
- Business Line of CreditCommonBetter credit or revenue since you opened the line can qualify you for a lower rate
THE PROCESS
How Refinancing Works — Step by Step
From your current statements to a retired loan: about 10 days with an online lender, 30–60 days with a bank or an SBA 7(a) loan, 60–90 days with an SBA 504 loan.
Assess Your Current DebtDay 1
Gather all loan statements and convert each cost to APR. A factor rate’s APR depends on how fast you repay: a 1.30 factor paid daily over 12 months is about 55% APR, over 6 months about 110%. Identify your highest-cost obligations first.
Check Your QualificationsDay 1–2
Pull your credit report. Calculate your DSCR: Net Operating Income ÷ Annual Debt Service. Confirm 12+ months in business.
Apply with BestLoanUSADay 2
Complete our single application. We match you with lenders for refinancing products — term loans, SBA, equipment refi, LOC — all in one place.
Review & Compare OffersDay 3–5
Receive competing refinance offers — online lenders often within days. Compare APR, total payback, monthly payment, and prepayment penalties.
Submit DocumentationDay 5–10
Typical docs: 3 months bank statements, 2 years tax returns, existing loan statements, P&L, and business formation documents.
Close & FundDay 10–90
Online lenders can close around day 10; bank and SBA loans take longer (see above). The new lender pays off existing debt directly. Your old loan is retired and you begin repayment under your new, better terms.
Free tools
Run the numbers
The same metrics a lender checks — free, instant, no signup. Each result links straight into an application.
FAQ
Refinancing Questions Answered
Will refinancing hurt my credit score?
Starting with BestLoanUSA doesn't: there is no hard credit pull to compare options. When you choose a lender and apply, a hard inquiry usually lowers a personal score by a few points for a short time. Business-loan inquiries are not bundled the way mortgage shopping is, so apply only with the lenders you are serious about. Lower payments made on time help your credit over the following months.
Can I refinance an MCA (merchant cash advance)?
Yes, often. A merchant cash advance priced at a factor rate of 1.15–1.50 works out to roughly 30% APR (1.15 repaid daily over 12 months) to well over 150% APR (1.50 repaid over 6 months), depending on how fast it is repaid. Once your revenue, time in business and credit qualify, a term loan, line of credit or SBA 7(a) loan can pay the advance off and replace daily or weekly debits with a monthly payment. We compare the new loan's total cost with your current payoff before you decide.
Does BestLoanUSA arrange merchant cash advances?
Our first job is the lowest-cost loan you qualify for — bank, SBA or a longer-term non-bank loan. When a business can't wait for that, or doesn't qualify yet, an advisor may present a short-term option such as a merchant cash advance, with its full cost and payment schedule in writing, together with a plan to refinance it into a lower-cost loan as soon as you qualify — and we help with that refinance.
What documents do I need to refinance?
Standard requirements: 3–6 months business bank statements, 2 years business tax returns, current loan or MCA statements showing payoff amounts, profit and loss statement (current year), business license, and government-issued ID. SBA refinancing also requires a detailed use-of-proceeds form and may require collateral documentation.
Are there prepayment penalties on my current loan?
Check before you refinance. Many merchant cash advances require the full payback amount even if you pay early; some offer an early-payoff discount. Short-term loans may charge a prepayment fee or the remaining interest. Ask your current lender for a written payoff letter (not a balance statement) — it shows the exact amount to retire the debt today, including fees — and count it in your savings.
How long does business loan refinancing take?
It depends on the new loan: online term loans about 3–10 business days, equipment refinancing about 1–3 weeks, bank loans 30–60 days, SBA 7(a) loans 30–60 days and SBA 504 loans 60–90 days, counted from a complete application. If daily payments are squeezing cash flow, an online refinance can come first and a lower-cost bank or SBA loan later, once you qualify.
What is MCA stacking and how does refinancing help?
Stacking is taking more than one merchant cash advance at the same time. Each advance takes its own daily or weekly debit, so together they can consume a large share of each day's sales and leave too little for payroll and suppliers. Refinancing combines them into one loan with a single, usually monthly, payment. If you are stacked, talk to an advisor before taking another advance.
Related on BestLoanUSA
Related financing
All loans →- Cash-Out Refinance A commercial cash-out refinance replaces your current mortgage with a larger loan and pays you the difference in cash — to renovate, expand, pay down costlier debt or buy another property. Lenders typically go to 65–75% of today’s appraised value (up to 90% for an owner-occupied SBA 504 refinance), at about 6.5–8.75%. RefinancingCash-out refinance
- CRE Refinancing A commercial real estate refinance replaces your existing mortgage with a new loan — to lower the rate, replace a maturing balloon, move from floating to fixed, or take cash out. To refinance, check your current loan’s maturity and prepayment penalty, get the property appraised, show that its net operating income covers the new payment at the lender’s minimum DSCR, compare term sheets and close — the new lender pays off the old loan, usually in 30–60 days. Bank, SBA 504, CMBS and DSCR lenders price refinances at about 6.25–8.75%. RefinancingCash-out refinance
- Hard Money Takeout A hard money takeout refinance replaces a short-term hard money or bridge loan with a long-term loan once the property is renovated, leased or stabilized. Bank, SBA and DSCR lenders typically lend up to 75% of value at about 6.25–8.75%, compared with 9–13% for hard money. RefinancingSBA loans
- Business Loans A business loan is financing for an operating company — working capital, equipment, expansion or an acquisition — repaid from the business's cash flow. Established businesses with solid financials usually get the lowest cost from SBA and bank loans; online lenders trade higher rates for speed. Term loansLines of credit
Guides & articles
All articles →- Cash-Out Refinance on Commercial Property: Accessing Equity How a cash-out refinance on commercial property works: how much equity you can take out, what lenders require, the costs, and when it makes sense. RefinancingCash-out refinance
- Business Line of Credit vs. Term Loan: When to Use Each A line of credit covers ongoing, uneven needs; a term loan funds a one-time investment. How to choose, with the cost of picking the wrong one. Term loansLines of credit
- Commercial Real Estate Refinancing: When and How to Qualify When refinancing a commercial mortgage makes sense, your options before a balloon comes due, and what lenders need to approve the new loan. RefinancingCash-out refinance
Glossary
All terms →More calculators
All calculators →- Cash-Out Equity Calculator Calculate how much equity you can pull from your commercial property. See your maximum cash-out amount, new loan terms, and the impact on monthly payments. Cash-out refinanceRefinancing
- Yield Maintenance Calculator Estimate your prepayment penalty before refinancing or selling. Understand the true cost of exiting your commercial loan early and compare penalty structures. RefinancingPrepayment penalty