Business Loan Balance Transfer: What is it and can I use it?

business loan balance transfer

Have you ever found yourself in a situation where you’re repaying a loan, and you find another lender offering you better terms for the same loan? But you don’t want to apply for another loan even though you’re tempted to because you don’t want to be overleveraged? We can empathise! Many business owners find themselves in similar circumstances.

Now you must be wondering what you should do in this situation – that’s where a Business Loan Balance Transfer comes in. Let’s find out what it is.

What is a Business Loan Balance Transfer?

Say you have a live (active) business loan with a lender. You’re slowly repaying the loan by keeping up with your EMI payments every month, but you’re unhappy with the service your lender is providing you, or maybe the interest rate of the business loan is too high.

Find out how lenders decide what interest rate to offer you.

You go out into the market and find another lender offering you a similar loan at a better interest rate or higher-quality customer support, but you don’t want to increase your liabilities by getting another business loan.

As a borrower, you have the option of transferring the balance of your existing business loan amount to another lender. This way, you get the better terms and service the new lender offers you without increasing your debt. This is known as a Business Loan Balance Transfer.

Is a Business Loan Balance Transfer the right option for you?

A Business Loan Balance Transfer is a good option for you if:

  1. The interest rate you pay on your current loan is higher than the rates being offered in the market right now for the same type of loan. 
  2. You need more money than what you had initially calculated. 
  3. You are unhappy with the customer service and support your lender provides 
  4. You want to extend the tenor of your loan to make the repayment period longer than what it is right now. 

Why is the loan tenor important when getting a business loan?

Will the Business Loan Balance Transfer cost me?

Business Loan Balance Transfers do involve some cost, but this will be lower than what you paid for the same business loan when you first got it. Since your existing lender has already processed all your business particulars, your Balance Transfer expense will not be too high.

That being said, your actual cost will vary depending on who your new lender is and your business loan type, amount, and loan terms.

Does CreditEnable help with Business Loan Balance Transfers?

Yes, CreditEnable does facilitate Business Loan Balance Transfers!

When you use CreditEnable to apply for a business loan, we will first assess your business and credit profiles. If you have any live business loans, we’ll check to see if any of our 25+ lender partners offer any business loan products with better loan terms than the ones your current lender offers you. If they do, we’ll let you know and even help you through the Balance Transfer process.

CreditEnable Tip:
Business Loan Balance Transfers are only available for Secured Business Loans.

Applying for a loan using CreditEnable’s technology platform is simple:

Step 1 – Register on our platform.
Step 2 – Fill out our short survey so we can check your business loan eligibility.
Step 3 – Upload digital copies of your KYC and business documents.
Step 4 – We match you with a lender and get you the money your business needs to grow!

We charge no service fee, and our process has zero impact on your credit score!

Start my application with CreditEnable today!

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