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Most companies have loans and the interest expense that are associated with those agreements. There are LOC (lines of credit) interest, interest charged on bank accounts, vehicle and equipment loans, lockbox fees, service fees and sometimes penalties assessed by your bank or some vendors. If your company is lucky enough to have substantial cash in the bank, see if some of your loans can be paid off without any prepayment penalties, thus cutting down on interest expense per month.  If your company is financially making money and is attractive to other lending banks, there may be other banks that are willing to take your LOC at a significantly lower interest rate.  Try to renegotiate your LOC interest rate to cut that interest expense per month. Speak with your loan representative and tell him you will have to move your loan when it is up due to the interest savings available unless your bank can do something to reduce this monthly loss.

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