Wouldn’t it be nice to have an extra $1000 in your monthly budget?
Imagine what you could do with that money, re-invest back into your business, extra marketing, new staff, new tools, and much more.
“Yes!” you’re probably saying… “but how?”
At Lifestyle Tradie, we talk to our tradies a lot about increasing cash flow, by reducing outgoing expenses!
There are lots of ways to do just that, but one of the most powerful tools that you just might have at your disposal is the ability to refinance, and restructure your monthly debts. Significantly increasing your monthly cashflow, in an instant.
Financial planners frequently advise their clients to consolidate their monthly debts, so that they can improve their monthly cash flow.
Refinancing high rate loans, into lower rate facilities, means that tradies can have more cash to pay for expenses.
By regularly reviewing your loans and interest rates, you can look for lower rate facilities and reduce your monthly repayments. It might not mean that you have to change your provider or product, but just being aware of the rates and products that are being offered, means that you can go to your current provider and ask them to match what is out there.
Sounds too good to be true doesn’t it… as the old saying goes, ‘if it’s too good to be true, it probably is”.
Despite the benefits, there are some pitfalls when looking to refinancing and consolidating of which you should be aware:
1. Exit fees and penalties
Look out for these fees, especially on loans for cars and equipment.
2. Weigh up the total cost of refinancing
Sometimes a cheaper rate does not necessarily mean you will save in the long run – speak to a licensed finance professional.
3. Don’t leave it too late
Review your finances when your credit rating is high giving you every chance to secure the best products on the market. Refinancing when you get in trouble may only leave you with high interest rate options
4. Shop around
While you don’t necessarily have to change your provider, don’t be afraid to check out your options. You would be kicking yourself if you saw a lower rate elsewhere AFTER refinancing with your current lender.
Failing to take note of these could ultimately result in higher outgoings/expenses, which defeats the purpose of refinancing in the first instance!
Interested in learning more about your trade business financials?
What’s next?
- Join our Kick-Ass Tradies Facebook Group, for access to trade business specific conversations, tips and resources, plus a like-minded community of tradies.
- Book a 15-minute Game Plan Call with Andy, owner of Dr. DRiP plumbing and co-founder of Lifestyle Tradie, to clarify your priorities and get clear action steps.
