If you’re a savvy SME owner using a flexible credit line from providers like Iwoca or Capital on Tap, you’re already familiar with the power of quick-access funding. These facilities are brilliant for managing cash flow dips, seizing sudden opportunities, or covering unexpected costs.
But what if you could take that same strategic mindset a step further? What if you could reduce your monthly outgoings, secure a lower interest rate, and spread your repayments into manageable, predictable instalments?
That’s where refinancing comes in—and it could be the smartest financial move you make this year.
The Short-Term Solution vs. The Long-Term Strategy
Lines of credit like Iwoca and Capital on Tap serve a crucial purpose: speed and flexibility. You draw what you need, when you need it. However, this convenience often comes with a trade-off:
Higher Interest Rates: To compensate for the flexibility and unsecured nature of the funds, rates are typically higher than traditional term loans.
Short Repayment Windows: Balances are often structured for quick repayment, which can create steep monthly charges that eat into your cash flow.
This is perfect for a one-off, short-term need. But if you’ve used these facilities for a larger, longer-term investment—like equipment, a marketing campaign, or stock—you might now be feeling the pinch of those higher, recurring costs.
Why Refinancing with rebuildingsociety.com Makes Sense
Refinancing is simply the process of taking out a new loan to pay off your existing ones. By refinancing your Iwoca or Capital on Tap balance with us, you’re not just swapping debt for debt; you’re restructuring it to work better for your business.
Here are the two key benefits:
1. Secure a Lower Interest Rate
This is the most immediate impact. By moving from a flexible line of credit to a structured business loan with rebuildingsociety.com, you can often secure a significantly lower annual interest rate. This isn’t just a minor saving. A lower rate reduces the total cost of your capital, freeing up profit that can be reinvested straight back into growing your business.
2. Spread Repayments Over Up to 5 Years
This is the game-changer for cash flow. Instead of facing large, frequent repayments, you can restructure your debt into fixed, monthly instalments over a term that suits you—up to five years.
- Predictability: Know exactly what your repayment is each month, making budgeting and forecasting simpler.
- Breathing Room: Dramatically reduce your monthly outgoing, improving your working capital and reducing financial pressure.
- Alignment with Investment: Match the loan term to the lifespan of the asset or project you funded. A five-year loan for a five-year growth plan makes sound financial sense.
Is Refinancing Right for Your Business?
Consider refinancing if:
- You have an outstanding balance on a flexible credit facility that you’re rolling over.
- You feel the monthly repayments are too high and restrictive.
- You want to lock in a lower, fixed cost of capital.
- Your business is stable, and you can demonstrate reliable revenue.
The Simple Path to Smarter Finance
- Review: Check your current balances and effective interest rates on your Iwoca/Capital on Tap accounts.
- Compare: See how a lower-rate, longer-term loan from rebuildingsociety.com could lower your monthly payments.
- Apply: Our application process is straightforward and designed for SMEs. We focus on the health and potential of your business.
- Refinance & Grow: Use the new loan to clear the old, high-cost debt. Enjoy the benefits of a manageable repayment plan and watch your cash flow improve.
Don’t let short-term finance constrain your long-term ambitions. The capital you accessed was right for the moment. Now, a rebuildingsociety.com term loan might be the right tool to consolidate that move and build a stronger, more financially resilient future.
Ready to reduce your repayments and take back control of your cash flow? Click here to explore your refinancing options with rebuildingsociety.com today.
rebuildingsociety.com - Financing Growth, Building Futures.
