Corporate Refinancing for Businesses and Enterprises
Corporate Refinancing for Businesses and Enterprises Prior to trade by-batter in economic development of the world, lending has been one of the fastest and most affordable ways to implement large capital-intensive projects, finance current expenses and pay off previous debts. The latter reason has led to the growth of corporate refinancing around the world, especially during period of prolonged crisis and market uncertainty. The term “refinancing” is also used in the meaning of loan rollover. As a rule, this process is carried out by issuing a new loan instead of the previous one or by exchanging old bonds for new ones. The purpose of refinancing is mainly to improve the terms of the loan (maturity, payment schedule, interest rate), as well as to combine several debt obligations into one more acceptable loan for business. In some cases, companies request refinancing when they need significant additional funds in excess of the original loan. Unlike refinancing, restructuring is as...