Restructure an existing obligation
A refinance may replace a current loan or seller note with a new lender and a different payment structure.
Why an owner may refinance
Access business capital
If sufficient collateral value and repayment capacity exist, a lender may consider additional proceeds for legitimate business purposes.
Match debt to the business
Owners may seek a different term, amortization schedule or maturity that better fits the operating business.
Information lenders may request
- Current license number, class, jurisdiction and status.
- Evidence of ownership and any existing liens or claims.
- Current loan or seller-note payoff information.
- Recent business financial statements and tax information.
- Requested refinance amount and intended use of proceeds.
- Other collateral or guarantees available to support the request.
Refinance review process
Establish the current position
Confirm the license, existing debt, payoff amount and proposed refinance objective.
Evaluate collateral and cash flow
Potential lenders review license value, business performance, lien position and repayment capacity.
Compare proposed terms
If financing is available, the borrower reviews the proposed amount, rate, term, payment structure and closing requirements.
Pay off and document
Existing obligations are addressed at closing and any new security interests are documented as required.
Value is not automatic: a liquor license may have substantial market value in one jurisdiction and little transferable value in another. Lenders determine acceptable collateral value independently.
Considering a refinance?
Organize the license, payoff and business information before requesting lender review.