Debt is a part of running your business, but how you manage that debt can make a big difference. Did you know you could save money on your bank loans by having banks compete for debt you already have? We show you how!
Save Money on Your Bank Loans
Whether it is debt to a bank, to a playground equipment company, a credit card company, or any other type of financier, you have options to reduce your costs.
First, it helps if you have a relationship with an alternative institution other than whom you are currently using. Regional banks are always willing to discuss your business—whether you are currently doing business with them or not, or are seeking a loan today or not. They are more than happy to buy you lunch to learn more about the potential of you borrowing from them.
What About Debt?
Debt is how banks and financing institutions make money—even if you borrowed money from the previous owners or your crazy brother-in-law. They want to continue to make money off of your payback. If you have not missed payments, you have negotiating power. This allows you to ask for reductions in your interest, or you could refinance the debt with another institution.
You’ll need to look at what options you have for refinancing. If you have debt interest at six percent or greater, you have an opportunity to still negotiate it down. Request a proposal from a new institution and then share that information with your existing lender and ask for them to beat it. Most often, if you have had your debt for more than a year, they will consider reducing their rate. This can save you tens of thousands of dollars. One percent off a 10-year loan could be a tremendous savings. Take a look at your debt today!
Anthony A. D’Agostino, Founder and CEO of Inspire! Care 360, is also the owner and operator of Inspire! Learning and Childcare and Crayon Campus in Western NY. Anthony has also been a leading principal with companies such as Ernst and Young, Pearson Education and Xerox Corporation, implementing practices in areas of Human Resources, Adult Training and Development as well as Employee Engagement and Communication.