Refinancing and consolidating business debt
Many businesses run into trouble and suddenly feel the pinch of existing debt. In these situations, refinancing business debt might be the answer.
What is refinancing?
Feeling the pinch?
Many businesses run into trouble and suddenly feel the pinch of existing debt.
Refinancing business debt
In these situations, refinancing business debt might be the answer.
Asset refinance
Were you looking for asset refinance? This page is about business debt consolidation and refinancing loans.
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How does refinancing a loan work?
Business debt consolidation
Refinancing (or ‘business debt consolidation’) means consolidating multiple business debts into one, or changing one loan for another. The overall idea is that a business can swap expensive debt for more affordable debt, and give themselves a little extra breathing room in terms of working capital.
Affordability concerns
Of course, this situation can raise some affordability concerns, so you have to be very careful that you’re switching to a facility with suitable terms and rates for your situation, and not taking on too much risk. Here’s a few reasons you might consider a refinance for your business:
Savings
This is the most obvious reason to refinance: to gain a lower rate of interest or smaller monthly repayments. Decreasing your overall rate of interest helps you pay off your principle faster and get back into the black — or you could choose to spread the same loan amount across a longer period of time to reduce the size of individual
Simplicity
If you’re refinancing multiple debts into one, that means you’ll only have a single set of payments to worry about, and a single point of contact with one lender instead of several. That means you can concentrate on the day-to-day running of your business without worrying about managing your relationship with multiple creditors.
Safety
Refinancing helps you improve your cash flow position, because you’ll have more working capital available that’s not being poured into expensive finance any more. The consequences of defaulting on business debt can be very serious, for example getting a CCJ or facing the threat of insolvency — a refinance could help your business live a little less 'on the brink', so you can worry less, and grow your business more.
How much can you afford to borrow?
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
We can help
Many options
There are so many options in business finance these days, and business debt consolidation depends on a number of factors.
Over 70 lenders
We work with over 70 lenders offering dozens of products from the whole spectrum of business finance, so we can find the option that's best for your business — whether it's a peer-to-peer loan or an asset refinance.
Consumer debt note
Please note, Funding Options cannot assist you with consumer debt. If you're looking for help with consolidating personal debt, visit the Money Advice Service website for debt advice.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
