Negotiating Loan Terms

2 min. read

Once a financial institution looks favorably upon your loan request, there are several rules of thumb to follow to help save money.

When a Financial Institution Says “Yes”

Negotiate interest rates. Some financials are flexible. You won’t know until you ask. They will sometimes drop the interest rate by a point or two if your numbers look good or the business you are purchasing looks strong.

Try to secure the longest possible loan. Long-term loans lower monthly payments and help you conserve cash flow, although they are usually more expensive in interest payments. You can always refinance later for a shorter term when your cash flow position improves or pay off your loan faster.

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