Some lenders are tackling rising interest rates by offering customers with long-term loans a penalty-free option to repay or refinance early and secure fixed rate finance. Chris McLoughlin from Bathgate Business Finance explores the opportunity.
Long-term loans are common in the legal sector, particularly to support acquisitions or buying in or out of a firm. Many are 10-year facilities, which given rising interest rates have likely provided a financial challenge for those on variable rates.
Considering increasing interest rates, some providers have decided to offer their existing customers the option to either pay off their loans or refinance early, so they can secure a fixed term loan facility with another provider that will allow them to better budget for monthly payments.
Chris McLoughlin, BDM at Bathgate Business Finance, said: “From the current lenders’ perspectives, this kind of offer will allow them to get outstanding debts in more quickly, and foster goodwill and loyalty with customers, by offering a penalty-free option to refinance and bring stability to cash flow.
“For customers being offered the ‘out’ represents an opportunity to review finances and secure a fixed term loan that will bring security and stability and insulate them from any further sudden rises, giving peace of mind in challenging economic times.”
Bathgate Business Finance is working with several lenders who can refinance long-term personal professional loans and commercial loans in the legal sector. To discuss your options, contact Chris McLoughlin on 07990 012 266 or email firstname.lastname@example.org