Funding for your business
Business Debt Consolidation Loan
A business debt consolidation loan allows businesses to bring all existing agreements into one payment plan.
Business Debt Consolidation Loans for UK Businesses
If your business is managing multiple finance agreements, business loans, or credit lines, debt consolidation finance can help simplify your repayments, improve cash flow, and potentially reduce your overall borrowing costs.
We work with businesses of all sizes to restructure existing debt into a more manageable financial arrangement. Whether you’re looking to lower monthly outgoings or reduce administrative burden, we can help you take control of your finances.
What is a business debt consolidation loan?
Business debt consolidation finance allows businesses to bring together several existing debts into a single, streamlined facility. Instead of juggling multiple repayments, your financial commitments are combined into one structured repayment plan, with potentially better terms.
This type of finance can be used to pay off a mix of outstanding loans, equipment finance, credit facilities, or other short-term borrowings. By consolidating, you may be able to secure extended repayment terms or simply improve management over your financial obligations.
Debt consolidation can free up capital, support cash flow, and give you a clearer picture of your business's financial health.
What finance options are available with a business debt consolidation loan?
Unsecured business loan: This type of lending allows businesses to have a loan arranged without having to use assets as security against the loan. An unsecured loan is approved based on the creditworthiness of the business, making it suited to companies who do not own many assets, or who would rather not use business assets as security for a loan. Early repayment options and tailored agreements make unsecured lending a flexible solution for businesses.
Secured business loan: This loan type allows businesses to receive funding by using a business property as security. Once the property is evaluated to see whether it is suitable to be used as security, a business can usually receive a loan worth up-to 75% of the property’s value. As collateral is provided, secured loans are typically seen as lower risk by lenders.
Asset refinance: Asset refinance leverages the value in owned assets, where an asset is sold, and you repay it over a period of time. Throughout the financing period, the asset is still able to be used for business purposes, ensuring operations are not disrupted. Businesses can use the funds for purchasing new assets, or paying off existing debt, streamlining their repayments.
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Benefits of a business debt consolidation loan
- Simplified repayments
- Improved cash flow
- Potential cost savings
- Tailored solutions
- Flexible offerings
- No early repayment fees with unsecured lending
How long does it take to secure a business debt consolidation loan?
The timeline for arranging debt consolidation finance can vary depending on your current agreements and the documents required. However, once all relevant information is submitted, we can often secure approvals within 24 to 72 hours.
To keep things moving efficiently, it helps to have up-to-date financial accounts, details of your existing agreements, and a clear business plan. Our team will manage the process for you from start to finish, ensuring minimal disruption.
Applying for a business debt consolidation loan
We can compare offerings from a wide range of banks and alternative funders to determine the most suitable solution.
To get a quote or to learn more, simply fill out the form below. To speak to us directly, call us on 0115 958 6872, and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].
Business Debt Consolidation Loan FAQs
Will I need to provide a personal guarantee for a debt consolidation loan?
This depends on the size of the facility, the funder, and the financial strength of your business. Some lenders may ask directors to provide a personal guarantee, particularly for larger unsecured facilities, while secured options backed by property or assets may reduce or remove this requirement.
Will consolidating my debt affect my ability to raise finance in the future?
Not necessarily. In fact, having a single, well-managed repayment structure in place can make it easier to demonstrate financial stability to future lenders. As with any borrowing, how the facility is managed over time will play a role, so keeping up with repayments is key to maintaining a strong position for future funding needs.
Which types of business debt can be consolidated?
Most forms of business borrowing can be brought together under a debt consolidation arrangement, including unsecured loans, secured loans, asset finance agreements, and working capital agreements. A broker can review your existing agreements to determine what can be consolidated into a single facility.
Is there a minimum or maximum amount I can consolidate?
Loan amounts can vary significantly depending on the funder and the nature of your existing debts, ranging from smaller unsecured facilities through to larger secured arrangements backed by property or assets. We can assess your current commitments and match you with a facility that reflects the full scope of what needs consolidating.
How long does it take to arrange business debt consolidation finance?
Timescales can vary depending on the number of existing agreements being consolidated and how quickly the required paperwork can be gathered. Straightforward cases with fewer facilities can often be arranged quickly, while more complex consolidations may take a little longer to structure.
Do I need to settle my existing agreements before applying?
No, you don't need to settle your existing agreements upfront. Part of the consolidation process typically involves using the new facility to pay off your current debts directly, so the funds are used to clear what you owe before the new, simplified repayment structure takes over.
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