Refinancing replaces an existing loan with a new one, usually to get a better rate, different term length, or improved cash flow. It’s worth considering periodically, not just when a loan is causing obvious pain.

Signs it’s worth exploring

Interest rates have dropped meaningfully since you took out the original loan
Your business credit has improved since the original loan, which may qualify you for better terms now
Your monthly payment is straining cash flow and a longer term would ease it, even if total interest paid increases slightly

What to check before refinancing

Prepayment penalties on your existing loan, which can offset some or all of the refinancing benefit
Origination fees or closing costs on the new loan
The total interest cost over the full new term, not just the improved monthly payment

The math that actually matters

Compare total cost over the life of the loan, not just the interest rate percentage — a lower rate over a longer term can still cost more in total interest than staying on your current loan. Run both scenarios with real numbers before deciding.