What Are the Potential Pitfalls of Interest Savings?
While interest savings are beneficial, entrepreneurs must be cautious of potential pitfalls:
Prepayment Penalties: Some loans come with prepayment penalties that can offset the benefits of refinancing. Hidden Fees: Ensure that there are no hidden fees associated with refinancing or renegotiating loan terms. Over-leveraging: Reducing interest payments should not lead to taking on excessive debt, which can strain the business's finances.