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How Low Can You Go?

Refinancing could help you lower your monthly loan payments.

This story appears in the June 2008 issue of Entrepreneur. Subscribe »

When David Letterman took over the reins at Bonfatto's, his family's sandwich shop, in 1999, he quickly sensed the growth potential for the business that his grandparents started after immigrating to the U.S. from Italy. Business was so good that the following year he opened a full-service restaurant and bar. In 2005, he expanded again, opening an adjacent lounge for meetings and special events. But success came at a cost--the Bellefonte, Pennsylvania, entrepreneur found himself juggling three different loans and growing increasingly frustrated with the fees his lender was charging.

"[The loans] were all due at different times of the month, so it seemed as though I was constantly putting money aside just to pay [them]," recalls Letterman, 48, owner of Bonfatto's with wife Sherri, 46. "The bank was not willing to work with me to help me with the cash flow--[at least not] until they learned I was going to switch banks."

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