Refinancing 

Refinancing involves replacing an existing debt obligation with a new loan, typically with better terms, such as a lower interest rate, extended repayment period, or modified payment schedule. Businesses and individuals refinance debt to improve cash flow, reduce financial costs, or restructure liabilities during changing market conditions. 

Reasons for refinancing: 

• Lowering interest expenses. 

• Extending loan maturity. 

• Consolidating multiple debts. 

• Unlocking equity (in the case of property or asset-backed loans). 

• Adjusting to improved credit standing. 

Refinancing can apply to various financial obligations, including corporate loans, bonds, mortgages, and lines of credit.