If you are a business owner financing a liquor license, you may wonder if you can refinance it. The answer to this question depends on various factors, including the terms of your current license and the refinancing options available to you. We’ll explore some common scenarios in which refinancing might make sense for liquor license holders. We will also discuss some benefits and considerations of refinancing so that you can make an informed decision about whether or not this is the right option for you.
What Is Liquor License Refinancing?
What if you are halfway through paying off your license and realize it’s just not working out? Maybe the cost of the alcohol plus the license is bleeding out more money for you than it’s bringing in, or maybe you need to drop down to a different, minor license?
Liquor license refinancing is taking out a new loan to pay off an existing liquor license. This process can be done for various reasons, but the most common reason is to free up cash for other purposes, such as renovations, marketing, or inventory.
Why Refinance a Liquor License?
Several benefits come with refinancing a liquor license:
- When you refinance your liquor license, you essentially take out a new loan to pay off the old one. It is an excellent option if you need to extend the repayment timeline. However, it is essential to note that this kind of refinancing may negatively impact your business credit score and lead to higher interest rates.
- If your business has temporarily taken a hit and you are struggling to make ends meet, refinancing your liquor license can help you get through a tough time. It can provide you with the relief you need until your financial situation improves.
- If you want to expand your business, refinancing your liquor license can give you the funds you need to help you take your business to the next level and grow in a way that would ultimately pay off in the long run.
If you are considering refinancing your liquor license, it is important to speak with an experienced liquor loan professional who can help you understand the pros and cons and find the best option for your specific situation. For more information about the liquor license loan process, please call us at (321) 274-7104 or (386) 222-9668, or use our online contact form.
What to Consider Before Refinancing a Liquor License
Before you refinance your liquor license, there are a few things you should take into consideration:
- The current market value of your liquor license: For refinancing to be beneficial, the current market value of your liquor license must be higher than the amount you currently owe on it. If this is not the case, refinancing will not be worth it.
- Your credit score: To get approved for refinancing, you must have a good credit score. The better your credit score is, the more likely you will be approved and the better terms you will receive.
- The interest rate: When you refinance your liquor license, you will be responsible for paying interest on the loan. The interest rate will be determined by several factors, including your credit score.
- The term of the loan: The term is the amount of time you have to pay back the loan. Shorter terms typically have lower interest rates but higher monthly payments. Longer terms have higher interest rates but lower monthly payments. Choose a term that is right for your financial situation.
We want to ensure that growing and startup businesses that want to sell alcohol can find a way to do so. Liquor License Professionals offers different loan options to all our clients – we work with you to meet your business needs and goals.
We can help you determine the correct license for your business and identify loan terms that fit your budget. For more information about the liquor license loan process, please call us at (321) 274-7104 or (386) 222-9668, or use our online contact form.
We always make sure to get in touch with our clients as soon as possible. You can also email us at firstname.lastname@example.org. Before you come to us, please be willing to share what kind of license you are interested in, what business you will likely be running, your location, and any relevant information on how you intend to sell alcohol. Thank you.