2 min read
Where the risk sits
If a loan or facility must be refinanced at the end of its term, you are exposed to whatever the market looks like then. Rates may be higher, appetite lower, or your own position weaker — leaving a gap. See how to refinance business debt.
Managing it
Start the renewal conversation well before maturity, keep your credit profile clean, and avoid a cliff-edge where everything falls due at once. Staggered maturities and a standby facility reduce the pressure.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
What is refinancing risk?
The risk that when your debt matures you cannot renew or replace it on acceptable terms, especially if the market has tightened or your position has weakened.
How do I reduce it?
Plan the refinance early, keep your credit profile strong, stagger maturities so debt does not all fall due together, and keep a standby facility.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.