Loan refinancing for individual entrepreneurs

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The microcredit company VAYVND issues microloans to individuals online and in branches.
The microcredit company FinaGuru issues short-term and long-term online loans to individuals. The organization does not have a branch network; it operates remotely via the Internet.
Creditnice is a microfinance company operating since 2013. It specializes in loans with online processing, including to pay for purchases from partners; it also issues virtual credit cards and provides credit lines.
Creditify is a service for issuing urgent online loans to a bank card. You can take out a loan on a card from this company for various purposes. Income certificates and guarantors are not required.

What is loan refinancing

Refinancing is getting a new loan to pay off an existing debt on more favorable terms. In most cases, one bank is replaced by another. You can pay off several products at once, which will reduce your monthly payment.

It is necessary to distinguish between refinancing and restructuring. In the latter case, we mean changing the parameters of the existing loan agreement due to the difficult financial circumstances of the borrower, for example, providing a deferment for repaying the principal debt for several months.

In what situations should you refinance your loan?

You can refinance various loan products of other banks, issued for commercial purposes with and without collateral, including investment, universal, working capital, tender loan, overdraft and business credit card. Some banks issue refinancing for personal consumer loans of individual entrepreneurs.

Refinancing will be beneficial to small and medium-sized businesses in several cases:

  • Availability of various unpaid loans from banks. You can combine several payments into one. This will significantly reduce the debt burden
  • The need to remove property from collateral. Loan refinancing for individual entrepreneurs and LLCs will allow you to close the debt and remove encumbrances from real estate or equipment
  • Receipt of a profitable offer at a low interest rate. The new interest rate will reduce overpayments
  • The previous loan was taken out not so long ago. If half of the established period has already passed, most of the interest has been repaid, refinancing will significantly increase the final cost
  • Need for additional funds. You can receive an amount for business development or other needs
  • Refinancing conditions for individual entrepreneurs and LLCs
  • In order for a legal entity or individual entrepreneur to obtain a new loan in 2024 to repay the existing one, it is necessary to meet certain requirements and provide the documents requested by the bank.

Programs will vary from bank to bank. On average, you can receive from several hundred thousand to several hundred million dollars, depending on the solvency of the borrower and the collateral provided. The loan term is up to 5-10 years. You can submit your application online or in person at the office.

Frequently asked questions and answers

Why might a bank refuse?
First of all, the reason for refusal may be that the borrower or his debt does not meet the established requirements. It is also necessary to check the provided documents to ensure that they do not contain errors.

If everything meets the refinancing parameters, then the problem is the client’s goodwill. We are talking about credit history, the presence of a card file in the bank or debt to the budget. Information about the owners and directors is of no small importance. They must not be bankrupt, disqualified or prosecuted.

Do I need to open a current account with a creditor bank?
This requirement is optional. But usually, if you have a current account through which the bank can control the company’s turnover, it is easier to get a loan.

How to apply for refinancing?
First you need to select suitable offers and compare all the conditions. Then you should contact the bank, fill out an application and provide documents. Review of the request takes 3-7 business days. If a positive response is received, it is necessary to agree on a meeting to sign the contract. After repaying the debt, you must provide supporting certificates to the bank.

Is it possible to repay a loan received from the same bank?
In most cases, banks rarely allow you to refinance your own loans. Requirements for refinanced products can be found in the specific program. In addition, restrictions may be set on the total number of contracts to be redeemed, the period for their execution and the remaining period until closing.

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