Can I get a lower interest rate or a longer term to repay a business loan?

As with most issues with loans and repayment of mortgages it is often possible for the lender and the borrower to work together to modify the loan after it has originally been approved. Debt negotiation for business is more complex than typically seen for home mortgage renegotiation and it is highly recommended that an attorney that specializes in debt negotiation be involved in the meetings and in developing a workable modification. Often loans are extended over a longer period of time while interest rates may or may not be adjusted depending on the specific loan situation.

Typically business loans for small businesses have more options for modifications than those by large businesses or groups of individuals. With small businesses the borrower may be able to use equity from their own home or line or credit in the renegotiation of the business loan. This does put risk on the home itself, so careful consideration of this option is important with any type of modification.

Loan modifications for businesses may be initiated prior to the loan payments being missed. Often the lender will require an updated business plan and assurances that not only will any missed payments be caught up but the modified loan amount will be workable over the longer term or lower interest rate of the new loan. Working with both a financial planner and an attorney familiar with small or large businesses is essential in developing a solid financial plan for the future.