Refinancing a Business Loan is Not as Simple as it Sounds

Funding Need

This successful business owner had perfect credit and over half a million a year in revenue but couldn't find a bank to refinance his loan.

Solution

Biz2Credit connected this business owner with an out of state bank who was willing to refinance the loan.

Our Customer's Story

Tim Orson, Owner of The Shear Shack Salon, Asheville, NC,

The Shear Shack has been an Asheville, NC, institution for 30 years. When he bought the business eight years ago , Tim took out a business loan that required him to put up his home as collateral - a very common practice among banks. Like many homeowners, Tim took a financial hit on his house when the economy did a nosedive in 2008. He recently purchased another piece of property and is planning to build a new house on the site. In order to do that, he first needs to sell his current home.

However, Tim's existing home couldn't be sold until the first lien on the property was removed. His plan was to find a bank to refinance his Shear Shack business loan in order to remove the lien, and he visited ten banks to inquire about refinancing. All of them said no.

Tim Orson has excellent credit and a household income of $175,000. The Shear Shack is doing better than it ever has before with annual sales at $500,000. On paper, he is an excellent candidate for refinancing. However, no one was willing to be without a first lien position during the period it would take him to sell his current home and build his new one. This happens more often than one might think!

How Biz2Credit Helped

Biz2Credit Loan Specialist: Kamal Minhas

Tim Orson found Biz2Credit online, and completed his application with some basic financial information and the type of loan product he wanted. He believed there was an "80% chance it wouldn't work out based on what I was told [by banks] in North Carolina. If this didn't work, I would have considered foreclosing on his house. That was the last thing I wanted to do."

In less than four minutes, Tim learned that refinancing was possible and was connected with Biz2Credit Loan Specialist Kamal Minhas, who quickly called several lending partners.

Kamal found a network lender that was willing to take a chance on Tim Orson and The Shear Shack. The bank agreed to refinance the loan and removed the lien - in half the time it took his last loan to close!

Now that the lien has been removed, Tim Orson's house is on the market. He's excited to begin building on his new property and continue running the small business that he loves.