If you're in business for yourself you know that profit
margins can be razor thin; consequently you're always
looking for cost reduction ideas and how to increase
profitability.
Instead of cutting the quality of the goods and services
you offer your customers ' which could subject you to
customer backlash ' reduce your expenses and slash your
interest payments by considering a commercial mortgage
refinance.
Regardless of whether you carry loan balances for revolving
debt, capital improvements, research & development,
payroll, etc., you sometimes need ready access to cash. In
business, the difference between turning a profit or
posting a loss can sometimes be a few pennies per item.
If you carry loan balances, a reduction in interest rates
of as little as a single percentage point through a
commercial mortgage refinance could mean an extra few
thousand dollars to your bottom line each and every month.
You may have a great working relationship with your local
banker. Maybe you're friends or you play golf together.
Friendships and relationships are great, but if that
friendship causes your profitability to fall or your
business to suffer, it's time to look to a knowledgeable
mortgage broker who can help put your business back on
course. Here are just a few of the benefits to using a
commercial mortgage refinance:
LOCK IN A LOW FIXED INTEREST RATE - When you signed on the
dotted line for your original business loan, it may have
made perfect sense to have an adjustable interest rate
because rates were pretty consistently falling. Now, rates
are all over the map.
Forrest Gump said "Life is like a box of chocolates. You
never know what you're gonna get..." You can't afford for
your interest rates to fluctuate that wildly. If your
rates are as fickle as the good will of your employees,
it's time to lock into a lower fixed rate by refinancing
your commercial loans. Doing this will give you proven
savings and performance you can count on.
REDUCE YOUR PAYMENTS - There aren't too many expense
categories your business has that won't cost you money in
the long run. You can cut your payroll, but in so doing
you run the risk of alienating customers by reducing the
level of customer service they receive, which could
potentially come back to haunt you ' especially if your
main competitor has better customer service.
By refinancing your current debt, the savings goes into
your pocket and you can decide whether to allocate it to
another business expenditure or to apply it to a
richly-deserved vacation.
GIVE YOURSELF BETTER OPTIONS - Market conditions can change
at the drop of a hat. At one time it may have made perfect
sense to have a repayment term of 10 years on your
commercial loan. If conditions have changed ' or your
goals have ' you may need or want to change your repayment
term to five years or 15 years. By refinancing, you can
get the term that takes your business where you need it to
go.
COMBINE MULTIPLE LOANS - If you have multiple commercial
loans with varying interest rates, due dates, and maturity
dates, you may feel as if you're in the business of making
loan payments. If you want to cut down on administrative
tasks, you can refinance multiple loans or lines of credit
into a single loan, with a single due date, that can same
you time and ' more importantly ' money.
Going into business for yourself is easy, but knowing how
to increase profitability despite increasingly treacherous
market conditions, competitive factors, etc., can help put
your mind at ease.
If it was as simple as slapping a sign on a building,
everyone would be running a successful business. You need
to implement effective cost reduction strategies and have
the intuition to know when to hold 'em, know when to fold
'em...and know when it's time to use a commercial mortgage
refinance.
----------------------------------------------------
Darrin Roseborsky is a Refinance Specialist with OMAC
Mortgages, seminar speaker and president of the Roseborsky
Group and HomeRefinanceCoach.com. Darrin shows people how
to MAXIMIZE their equity PROPERLY and how to choose options
that make the MOST SENSE for their situation! An example of
exactly how this works, is at:
http://www.homerefinancecoach.com
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