Funding for your business
Business Debt Consolidation Loan
A business debt consolidation loan allows businesses to bring all existing agreements into one payment plan.
Last updated: 12 August 2026 - Written by Jake Dye - Jake heads our Business Loans division with over 6 years of commercial finance experience, focusing on unsecured lending solutions for small and medium-sized enterprises.
Key Takeaways
- Business debt consolidation finance is available from £25,000 to £750,000, with typical repayment terms of 3 to 72 months, allowing multiple existing agreements to be combined into one payment.
- 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.
- The facility can be structured via unsecured lending with no asset security and approved on creditworthiness or secured lending up to 75% of property value.
Business Debt Consolidation Loans for UK Businesses
Business debt consolidation loans are available from £25,000 to £750,000 with typical repayment terms of 3 to 72 months. A business debt consolidation loan allows businesses to bring all existing agreements into one payment plan in order to reduce the businesses monthly outgoing payments.
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.
Many of the businesses we help with debt consolidation are managing three or four separate agreements and don't realise how much they're overpaying each month until we run the numbers for them.
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.
How we helped a business consolidate its debts with an unsecured loan
A hospitality business required funding to consolidate £268,000 existing high-interest debts into a single, more manageable repayment, easing pressure on monthly cash flow and simplifying outgoings.
A single consolidation loan proved difficult to place with funders, as the client had multiple creditors requiring settlement simultaneously. MAF Finance Group responded by leveraging its extensive lender panel to structure an alternative approach, securing an unsecured business loan of £268,000 delivering the full funding requirement the client needed.
The agreement was arranged over a 4-year term, providing a repayment structure suited to the business. With funding in place, the client has been able to reduce monthly outgoings, and refocus on day-to-day operations with a clearer financial footing.
Which business debts can I consolidate?
Most forms of business borrowing can be brought together under a single consolidation facility, including:
- Business loans: whether secured or unsecured, existing loan agreements with high payments or inflexible terms can be combined into one facility with a single repayment schedule.
- Invoice finance and short-term facilities: agreements with frequent repayment cycles, such as invoice discounting or short-term revenue-based finance, can be replaced with a less frequent, more predictable monthly payment.
- Hire purchase agreements: if your existing asset finance terms are no longer favourable or due to mature soon, these can be included in a consolidation facility to extend the repayment timeline.
Do I qualify for a business debt consolidation loan?
You could apply for a business debt consolidation loan if your business meets the following criteria:
- Limited company, LLP or sole trader
- Business is based in the UK
- Trading for at least 6 months
- Minimum monthly turnover of £5,000
- Outstanding business debt across one or more facilities
Eligibility will ultimately depend on the funder, your business's financial health, and the nature of the debts you're looking to consolidate.
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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.
What documents do I need to apply for a business debt consolidation loan?
To assess your application and match you with the right funder, we'll typically ask for:
- The last 3 months of business bank statements
- Your most recent set of accounts or management accounts
- Details of your existing loans, credit facilities, or agreements you want to consolidate, including outstanding balances
- Personal details of any company directors
Applying for a business debt consolidation loan
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]. We can compare offerings from a wide range of banks and alternative funders to determine the most suitable solution.
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.
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.
Will consolidating my debt affect my credit score?
Consolidating your business debt is unlikely to have a negative impact on your credit score, and in some cases it may help. Replacing several repayments with a single payment, well-managed facility can make it easier to demonstrate consistent, reliable repayment behaviour to future lenders. As with any borrowing, how the new facility is managed over time will play a part in your credit profile going forward.
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.
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.
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.
How does the interest on a debt consolidation loan work?
Interest on most business debt consolidation loans is calculated on a reducing balance, meaning you only pay interest on the amount you still owe, not the original loan amount. As you repay the loan, the interest charged reduces in line with your outstanding balance. If you're able to repay your loan earlier than the agreed term, this can reduce the total interest you pay overall though this depends on the specific funder and agreement, as some facilities include early repayment charges.
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