Simplify your borrowing
Business Refinancing and Debt Consolidation
Business refinancing means replacing existing borrowing with a new loan, usually to lower the rate, reduce monthly payments or combine several debts into one. It can also release cash from assets or property you already own.
Funding Plus compares refinancing options and shows you honestly whether switching will save money once fees and early repayment charges are included.
- Combine several debts into one payment
- Move expensive debt onto a lower rate
- Release cash from assets you own
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Business Refinancing
How much do you need?
Takes about a minute. No impact on your credit score.
Business Refinancing at a Glance
- Amounts
- £10k – £5m+
- Terms
- 1 – 10 years
- Decision
- Days to weeks
- Security
- Optional
- Best for
- Several or costly debts
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Business Refinancing Works
- 1List what you oweBalances, rates, monthly payments and any early repayment charges.
- 2Compare a new dealWe show the total cost of refinancing against keeping your current debts.
- 3Agree the new facilityThe new lender often repays your old debts directly.
- 4One simpler paymentYou repay a single lender on clear terms.
How Much Does Business Refinancing Cost?
Refinancing only saves money if the new rate and fees beat what you pay now, including any penalties for repaying early. Longer terms lower monthly payments but can increase the total interest.
- Interest on the new loan
- Arrangement fees on the new facility
- Early repayment charges on old debts
- Total cost over the full term, not just the monthly payment
Worked example
Combining £45,000 of debt
- Loan A: £20,000 at 22% over 3 years
- £763.81 a month
- Loan B: £10,000 at 25% over 2 years
- £533.72 a month
- Overdraft: £15,000 at 18% (interest only)
- £225.00 a month
- Total before
- £1,522.53 a month
- New loan: £45,000 at 12% over 3 years
- £1,494.64 a month
- Overdraft cleared within
- 3 years
Illustrative only, not a quote. Ignores fees and early repayment charges, which can change the result.
Who Can Get Business Refinancing?
- A track record of keeping up current repayments
- Affordability for the new single payment
- Usually 1 to 2 years' trading
- Security for larger refinances
- No current insolvency proceedings
What You'll Need to Apply
- Statements for each existing loan or facility
- Settlement figures from current lenders
- Recent bank statements and accounts
- Details of any assets or property to secure the loan
Pros and Cons of Business Refinancing
Advantages
- One payment instead of several
- Lower rate on expensive debt
- Can free up monthly cash flow
- Clears revolving debt with a set end date
Things to watch
- Early repayment charges can wipe out savings
- Longer terms can cost more in total
- Secured refinancing puts assets at risk
- Doesn't fix an underlying cash flow problem
Ways to Refinance
Business Refinancing vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Business refinancing | Several or costly debts | Days to weeks | Optional |
| Unsecured business loan | Smaller consolidations | 1 – 5 days | None (guarantee usual) |
| Secured business loan | Larger consolidations | 2 – 6 weeks | Property |
| Government-backed loan | Viable SMEs short of security | 2 – 6 weeks | May be taken |
Who Uses Business Refinancing?
Refinancing helps any business carrying several loans, cards or merchant cash advances.
Customer story
“[Real customer story for Business Refinancing: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] business refinancing
Business Refinancing FAQs
Will refinancing save me money?
Only if the new rate and fees, plus any early repayment charges on old debts, cost less than keeping what you have. We show you both totals before you decide.
Can I consolidate merchant cash advances?
Some lenders will refinance MCAs into a term loan, which can lower costs for businesses with steady income.
Does refinancing affect my credit score?
A new application adds a search, but clearing several debts and paying one loan on time can improve your record over time.
Can I refinance with bad credit?
Possibly, especially with security. Lenders want to see that current debts are being paid.
What is asset refinancing?
Releasing cash from equipment or vehicles you already own, by borrowing against them.
Related Guides
Compare business refinancing quotes today
One quick enquiry, offers from UK lenders that fit, and a real person to talk you through them.