There can be many reasons why a company might look to refinance existing debt. This might be because the client is looking to:
- Increase facilities and amount of borrowing to enhance working capital or invest in growth and committed expenditure.
- Reduce fees and interest charges.
- Reduce the level of monthly debt service, perhaps by looking to pay back over a longer period as a means of supporting cashflow.
- Benefit from a strengthened position on the back of a positive trading track record which will now allow it to attract a funder and terms that it might not have been able to do when the current borrowing was entered into.
- Adapt its business model and therefore a different, or more flexible debt structure is now required to take advantage of new opportunities.
- Reset a funder relationship with a new lender.
Regardless of the rationale, PFG is highly experienced in reviewing a company’s current debt facilities and understanding a company’s requirements to arrange a refinance of existing debt onto a new structure better aligned to the clients needs moving forward.