How we can help
If daily merchant cash advance debits are squeezing your store, a fixed-payment business loan may lower your payments and end the daily debits. Ask your specialist whether consolidating makes sense for your numbers.
Check if my store qualifies →Key takeaways
- Refinancing works best when your store's cash flow is steady and your recent payment history is clean.
- SBA refinancing can consolidate some expensive debt if it meets SBA rules and lowers payments meaningfully.
- Balloon commercial mortgages should be refinanced 6–12 months before maturity.
- Compare total cost, not just monthly payment. Longer terms lower payments but may increase total interest.
Market overview
- Common uses
- Consolidating MCAs and short-term loans, balloon mortgages, partner buyouts
- Programs
- SBA 7(a), SBA 504 (real estate), bank and term loans
- Goal
- Lower payments, longer term, fixed costs
- Requirements
- Steady cash flow, on-time payment history
- Time
- 2–8 weeks (term loans) to 45–90 days (SBA)
Typical market ranges, not offers.
When refinancing makes sense
- You're paying daily or weekly on one or more merchant cash advances
- Your commercial mortgage has a balloon payment coming due
- Rates or your credit have improved since you borrowed
- You want to buy out a partner
- You have several loans and want one payment
Illustrative example: Consolidating advances
A store is paying about $4,200 per week across two advances and a short-term loan, roughly $18,200/month with about $260,000 still owed. If it qualifies to refinance into a 10-year loan at an assumed 11%, the payment becomes about $3,582/month, freeing up more than $14,618 per month for inventory, payroll, and the owner's salary.
Hypothetical scenario for illustration. Numbers are rounded and are not a quote or offer.
Refinancing options
| Option | Best for |
|---|---|
| SBA 7(a) refinance | Consolidating eligible business debt into up to 10 years (25 with real estate) |
| SBA 504 refinance | Refinancing owner-occupied real estate, sometimes with eligible business expenses |
| Bank term loan | Strong financials; moderate terms |
| Medium-term alternative lender loan | Stepping down from MCAs when SBA isn't yet possible |
What lenders need
- Current statements and payoff letters for all debts being refinanced
- Original note or agreement for each debt
- 2–3 years of business tax returns and year-to-date financials
- Recent business bank statements
- A clean payment history on the debts being refinanced (late payments make this harder)
Frequently asked questions
Can I refinance merchant cash advances for my liquor store?
When should I refinance a balloon commercial mortgage?
Does refinancing increase total interest paid?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, state alcohol laws, and lender requirements change and vary by state. Disclosures.