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Definition
Refinancing means replacing one or more existing debts with a new facility that carries better terms — a lower rate, a longer term, or several debts merged into one. It does not necessarily provide new money; its purpose is to make existing borrowing cheaper or easier to manage. Consolidation is a common form, folding scattered facilities into a single payment.
Refinancing suits borrowing that has become too expensive or too tangled — a carried card balance, an MCA, multiple small loans. See how to refinance business debt and refinancing vs new borrowing.
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