How to refinance a business loan — How-to

2 min read

RemainingCost left on the old loan

FeesSettlement + arrangement

NetSwitch only if you save

Amount (£)

Option A annual rate (%)

Option A term (months)

Option B annual rate (%)

Option B term (months)

Compares total cost and monthly payment of two offers side by side.

Step 1: work out what's left to pay

Ask your current lender for the settlement figure and the total remaining repayments. This tells you the cost of keeping the existing loan — the benchmark refinancing must beat. Do not rely on memory; get the exact numbers.

Step 2: count the switching costs

Identify any early settlement charge on the old loan and the arrangement fee on the new one. These are the friction that a refinance must overcome. A saving on paper can vanish once fees are counted.

Step 3: get and compare an offer

Obtain a firm quote for the new loan and compute its full cost for the amount and term you need. Compare against the remaining cost of the old loan plus switching fees. A stronger credit score since the original loan often unlocks a better rate.

Step 4: switch only for a real saving

Refinance if the new all-in cost is genuinely lower, or if it buys flexibility worth the price. If it merely lowers the monthly payment by extending the term at higher total cost, it is not a saving. See refinancing a business loan.

Compare the two loans

Use the calculator to weigh the new offer against your existing loan, fees included.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.

Frequently asked questions

How do I refinance a business loan?

Get the settlement figure and remaining repayments on your current loan, count the switching fees, obtain a firm quote for a replacement and compute its full cost, then switch only if the new all-in cost is lower.

What fees are involved in refinancing?

Typically an early settlement charge on the old loan and an arrangement fee on the new one. These can erase an apparent saving, so always compare net of every switching cost.

When is refinancing not worth it?

When the only gain is a lower monthly payment from a longer term at a higher total cost, or when switching fees outweigh the interest saved. Refinance for a genuine saving or worthwhile flexibility, not for optics.