How to Refinance a Business Property
- 1). Gather your loan documents from the purchase of the business property. This provides you with the information needed for your payoff, such as the account number.
- 2). Contact your mortgage company by calling the customer service number. Request a pay off. The company provides you with an amount and a time frame it is good for (for example, $100,000 good for 14 days).
- 3). Ask to speak to a representative with your current mortgage company in the department that handles business loan refinancing. Sometimes, if you make your payments on time and have good credit, your current mortgage lender provides refinancing incentives to keep your business.
- 4). Request the current rates for refinancing your business. Get an estimate from your current mortgage company to compare with other lenders.
- 5). Contact lenders in your area that offer business refinancing. Generally, local banks and mortgage brokers provide refinancing options. Request an estimate from each lender. This allows you to locate the best rates and terms.
- 6). Complete the application process with the lender you choose. To refinance your business, be prepared to provide the last two years' tax returns, financial statements and an updated business plan.
- 7). Close the loan to refinance your business. The lender assists you by ordering any required inspections. Also, he sets up the closing with the title company or attorney. Sign the new loan documents allowing the mortgage company to pay off your previous business loan and become the current lien holder.
