Tackling finance costs: Refinancing in a credit crunch environment

Refinancing can act as a catalyst for change within an organisation and provide the flexibility to help achieve strategic goals, to find out more watch our video above.

Not having the right financing arrangements in place for your business may make your borrowings unnecessarily expensive or restrict access to working capital or funds for growth.

Couple this with a deteriorating relationship with your lender, and you can quickly find yourself in a position where your financing no longer supports the strategic vision of the your business.

Refinancing can help alleviate some of these issues; however in the current climate, companies could be forgiven for thinking that their chances of refinancing their debt are slim.

Whilst it is clear that the crunch is impacting large-cap leveraged loans we are still seeing a lot of activity in the market for businesses with up to £600m of debt. This activity continues to generate competitive tension which means re-financing on attractive terms is still an option.  The key to getting the right debt financing for your business is to understand what different types of lenders are offering and then find the type that suits your business.