Your Loan Is Maturing — Here’s How to Make It Work for You

A loan maturity isn’t a crisis. It’s a decision point — and if you approach it the right way, it can actually be one of the best opportunities you’ll have to improve your capital structure.

Yet most founders treat maturity as a deadline to dread rather than a moment to negotiate from strength. They either default to renewing with their current lender on whatever terms are offered, or they scramble to find alternatives with weeks to spare. Both approaches leave money on the table.

Here’s how to make a loan maturity work in your favor.

Start early — much earlier than you think.

The single biggest advantage you have as a borrower is time. If your loan matures in six months, you have leverage. If it matures in six weeks, you have significantly less.

We recommend starting the refinancing conversation at least 4–6 months before maturity. That gives you time to evaluate your options, run a targeted process, and negotiate from a position of strength rather than urgency. Lenders can tell when you’re up against a deadline — and the terms they offer reflect it.

Evaluate whether your current lender is still the right fit.

Your business has probably changed since you first closed your facility. Maybe you’ve grown. Maybe your revenue mix has shifted. Maybe your industry has evolved. The lender that was the right fit 12 or 18 months ago may not be the best fit today.

Before you auto-renew, ask yourself: Has my lender’s credit appetite changed? Are they still competitive on pricing? Have they been a good partner — responsive, flexible, constructive? Are there structural improvements I should be pushing for?

If the answer to any of these is “I’m not sure,” it’s worth exploring what else is out there.

Understand what’s changed in the market.

The lending landscape shifts constantly. Spreads tighten and widen. New lenders enter the market. Credit boxes evolve. What was the best deal available 12 months ago may not be the best deal today — and vice versa.

In a $1.7 trillion asset class, lender competition is real. Borrowers with solid fundamentals have more options than they think. A maturity event gives you a natural reason to test the market without signaling distress.

Use the process to improve your terms, not just maintain them.

Things worth discussing include: better pricing (lower spread, reduced fees), more flexible covenant packages, higher advance rates or commitment sizes, longer maturity to reduce refinancing frequency, and the removal of terms that no longer make sense for your business.

Come with data to support your ask. Show how the business has performed since the original facility was put in place. If you’ve hit your numbers, grown revenue, improved margins, or reduced risk — that’s your negotiating ammunition.

Know your alternatives before you negotiate.

The most powerful position in any negotiation is having a credible alternative. Even if you ultimately stay with your current lender, knowing what other lenders are offering gives you the information you need to push for better terms.

This is where a marketplace like Hum adds real value. Instead of cold-calling lenders or relying on a single relationship, you can see what the broader market is willing to offer for your specific profile — and use that as a benchmark in your renewal conversation.

The worst-case scenario isn’t a tough negotiation — it’s having no negotiation at all because you ran out of time. If your loan is maturing in the next 6 months, the best time to start the conversation is now.

→ Ready to see what’s out there? Speak to Hum.