How a Music School Cut Its Monthly Debt Payments by About $18,000 With an SBA Refinance

Q: Can I refinance expensive merchant cash advances with an SBA loan?

A: Through one of our partner SBA preferred lending banks, Radix Financial Group was able to refinance a music school’s high-cost debt — an 18% advance at $8,800/month, a $13,740/month short-term loan, and a 30% line of credit — into a single SBA loan at 10% on a 10-year term. Monthly payments on that debt fell by about $18,000.

Here’s how it worked…

A music lesson studio in Lorton, Virginia, has grown into a community staple since opening in 2020 — private lessons, Kindermusik classes, group piano, summer camps, and instrument rentals.

But growth came with expensive debt. The studio was paying $8,800 a month on an advance at 18%, $13,740 a month on a second short-term loan, and carrying a line of credit at 30%. Just the two largest payments came to $22,540 a month — cash that should have been going into teachers, instruments, and students.

Through one of our partner SBA preferred lending banks, Radix Financial Group was able to refinance that debt into a single SBA loan at 10% on a 10-year term. The new loan moved into second position behind the studio’s existing SBA loan, and no real estate collateral was taken. From start to finish, the loan funded in under 45 days, closing October 16, 2026.

The result: monthly payments on the refinanced debt fell by about $18,000 — roughly $216,000 a year back in the business’s pocket.

If expensive short-term debt is eating your cash flow, an SBA refinance may do the same for you. Talk to us at radixfinancialgroup.com.