Small business owners know that taking on debt is sometimes necessary to achieve big goals, whether it’s launching a business or seizing a new opportunity. Yet, those payments can quickly add up, straining cash flow. Refinancing, however, may provide a way to lower monthly payments, improve cash flow, and create room for future expansion.
At SmartBiz®, we’ve worked with businesses across various industries to help them achieve exactly that. Here, we’ll explore how refinancing can help small businesses grow—and how it may help yours.
The power of refinancing
Refinancing consolidates existing loans or high-interest debts into one loan with lower monthly payments and, often, more favorable terms. The impact can be transformative. By reducing debt payments, small businesses may free up cash for operations, hire additional staff, invest in growth opportunities, or build an emergency fund for unpredictable expenses—creating opportunities for business growth through refinancing.
According to the U.S. Small Business Administration (SBA), small businesses with SBA loans often benefit from lower rates and longer repayment terms than other loan options. These features make SBA loans an attractive refinancing tool for reducing monthly costs.
Refinancing success stories
Manufacturing business: $276,000 annual savings
After over 50 years in operation, a private-label chemical and lubricant distributor faced rising debt payments from a high-interest loan and an expensive line of credit. With a combined payment of nearly $30,000 per month, cash flow was constrained despite consistent growth in revenue and profit.
By refinancing with SmartBiz, the business consolidated its loans into a $400,000 SBA loan. This brought monthly payments down to $6,958—reducing costs by $23,000 each month, or $276,000 annually. The extra $100,000 in working capital provided further room to scale operations.
The result? A business poised for even greater growth while maintaining financial stability—highlighting the potential for business growth through refinancing.
Medical practice: Debt relief and working capital
Starting a new business often comes with significant financial hurdles. For one chiropractor, financing startup costs with credit cards and high-interest loans led to a monthly payment burden exceeding $30,000.
Through refinancing, the practice rolled credit card balances and other loans into an SBA loan with a monthly payment of $2,365. This saved the owner $5,000 per month—equivalent to $60,000 annually—and included an extra $50,000 for working capital. The savings provided the financial freedom to focus on growing the practice without the stress of overwhelming debt payments.
Roofing contractor: Managing seasonal demand
Operating in Colorado, a roofing contractor experienced rapid growth driven by housing market expansion and steady demand from frequent snow and hail damage. However, a $17,000 monthly payment on a merchant cash advance (MCA) threatened cash flow during off-peak seasons.
SmartBiz refinanced the MCA into a $5,218 monthly SBA loan, cutting payments by nearly $12,000 per month. With $144,000 in annual savings, the contractor can now better manage seasonal cash flow, invest in new projects, and maintain financial flexibility.
Law firm: From investment stress to stability
A law firm specializing in estate planning and family law took out an MCA in 2022 to finance a strategic investment. While the investment paid off, the MCA’s $15,556 monthly payment continued to strain cash flow.
Refinancing with a SmartBiz loan reduced monthly payments to $2,435—a savings of over $13,000 per month. The loan also included funds to hire a part-time employee, further supporting the firm’s growth. Lower debt payments and expanded capacity are now fueling the firm's ongoing success.
Pizzeria: Growth without compromise
For a quick-service pizzeria, growth meant taking on three high-interest lines of credit, resulting in monthly payments of $8,500. Despite rising revenue, the debt hindered the ability to invest in further expansion.
Through SmartBiz, the business refinanced into an SBA loan with a $4,175 monthly payment. The new loan also provided $150,000 in additional funds to cover operating expenses. The result was a payment cut by more than half, reduced financial stress, and a stronger foundation for continued growth.
Benefits of SBA loans for small businesses: Beyond the numbers
Refinancing isn’t just about cutting monthly costs—it’s a strategic move that may open up new opportunities for your small businesses to grow and thrive. By lowering debt payments and improving cash flow, refinancing may provide the financial flexibility needed to reinvest in the business. Here are some of the ways refinancing may contribute to long-term growth:
Hiring and expanding your team
Reducing debt payments may free up resources your small businesses could allocate toward hiring new employees or expanding your workforce. Whether it’s bringing on skilled professionals to fill gaps or adding staff to keep up with growing demand, refinancing may help you build a stronger, more capable team.
Upgrading technology and infrastructure
Outdated tools or systems can limit efficiency and productivity. Refinancing may give you the funds to invest in new software, equipment, or other technologies that help streamline operations and improve customer service. Modern infrastructure may also give your business a competitive edge, allowing you to scale more effectively.
Expanding inventory and production capacity
If inventory shortages or limited production capacity have held you back, refinancing may help. By freeing up cash flow, you can stock up on essential products or invest in expanding production to meet increasing demand. For businesses in retail or manufacturing, this may be a game-changer during peak seasons or periods of growth.
Boosting marketing efforts
Marketing is often the key to reaching new customers and growing revenue, but it requires investment. Refinancing may allow you to allocate more resources to advertising campaigns, social media, or customer outreach initiatives. A strategic marketing push may generate new leads, build brand recognition, and drive sales—all of which contribute to long-term success.
Building a financial safety net
Growth doesn’t come without risks. With lower debt payments, businesses may set aside funds to create an emergency buffer or reinvest strategically when opportunities arise. This financial resilience may help weather economic downturns, unexpected expenses, or periods of slower growth.
By refinancing with SmartBiz, small businesses can move beyond simply managing debt and start focusing on strategies supporting sustainable, long-term growth. Whether you’re looking to expand, modernize, or better serve your customers, refinancing may be the first step toward a brighter future.
Is refinancing the right move for your business?
If debt payments are crushing your budget or slowing down your growth, refinancing might be worth looking into. Take time to review your current loans, research your refinancing options and talk to an advisor to make an informed decision.
At SmartBiz, we make refinancing easy for small businesses like yours. We want to provide clarity and guidance so you can feel good about what’s next.
When refinancing, consider:
- Your current rates and payments
- Loan types (SBA loans)
- Your business’s overall health and long-term plans
- Refinancing isn’t just about saving, it’s about making room to grow and set your business up
Explore how refinancing can help your business grow
Every small business deserves a chance to thrive, and refinancing debt may help you get there. The benefits of refinancing may be transformative, from reducing costs to fueling growth. If you’re ready to explore refinancing options, start with a conversation. SmartBiz is here to help simplify the process and empower your business for success.
