Business refinancing and debt consolidation

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Page written by Chris Godfrey. Last reviewed on October 19, 2026. Next review due April 6, 2027.

Repaying several providers at once, some of them every day or every week, can leave little room to run the business. Consolidating or refinancing replaces what you owe now with new funding, often over a longer term, so you have one repayment to manage instead of several.

Tell us about your business and what you’re repaying now. We’ll show you funding options that could fit, and you decide whether to go ahead.

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What is a debt consolidation loan?

Debt consolidation brings several debts from different providers together into one new loan from a single provider. You make one repayment instead of several, and the new term can be longer, shorter or the same as before.

What are the benefits of consolidating business debt?

Commercial debt consolidation may deliver multiple benefits:

Save time and administration costs by only dealing with one lender instead of many.
You may be able to spread the payments out over a longer period than you had with the older loans. This may reduce the monthly cost, which could help your cashflow.
You may be able to borrow more than the value of the combined loans and use that cash for other business needs, such as tax demands, energy bills, business rates, or supplier invoices.
You may be able to reduce the interest rate and any extra fees. This may also reduce the monthly cost.
You only have to factor one monthly payment into your cashflow.
You may be able to set the repayment date for a time that works best for you (such as when your customers usually pay you).

Top tip: check to see if you there are any early repayment penalties on the old loans, and what fees the new lender may charge before you commit to debt consolidation. Also, remember that if you take out a loan for a longer period, even if the interest rate is lower than before, you may still end up paying more overall.

What is business refinancing?

Refinancing is similar, but it replaces one existing loan with a new one. Businesses usually refinance to get a lower rate, a longer term or a repayment that suits their cash flow better.

Not sure which you need? It doesn’t matter at the start. Tell us what you’re repaying now and we’ll look at both.

What are the benefits of business refinancing?

The benefits of business refinancing are much like business debt consolidation:

You may be able to spread the payments over a longer period than the old loan.
You may be able to reduce the monthly cost, and/or the total amount you pay.
You may be able to borrow more than the value of the old loan and use that cash for other business needs.
You may be able to reduce the interest rate and any extra fees.
You may be able to set the repayment date for a time that works best for you.

What options are available for refinancing my business?

Refinancing means swapping one loan for another. Depending on the type of loan you are trying to refinance, and the purpose of the loan, there are several options to refinance your current business loans.

Popular refinancing loan solutions include:

Business loans: work like regular bank loans. Take out as new funding or to refinance existing debt.
Revolving credit facilities: an agreed credit pot that businesses may dip into as and when funds are needed. Pay off existing debt, cover general business expenses.
Asset finance and refinance: pays for plant and machinery, including commercial vehicles. Refinance your current equipment loans, or free up the sunk capital in hard assets that your business already owns to gain ready cash.
Commercial mortgages: depending on the loan-to-value of the property, (LTV), borrow against your business premises. Refinance your current business mortgage or use the funds to pay back more expensive short-term debt.

These loans may be offered on a secured or unsecured basis. (See below).

Is consolidating or refinancing worth a look?

It tends to help when the way you borrowed made sense at the time, but no longer fits how the business runs today. It could be worth exploring if:

You’re repaying more than one provider each week or month
Daily or weekly repayments are leaving gaps in your cash flow
You took short-term funding quickly and it’s costing more than you expected
A merchant cash advance is taking a large share of your card sales
Your revenue has grown since you last borrowed, so you may now qualify for different options

Secured debt consolidation loans for bad credit

A secured loan is backed by something the business owns, such as property, machinery, stock or unpaid invoices. Because the provider has security, secured loans can be easier to get if your credit history isn’t perfect, and rates may be lower. If you can’t keep up repayments, the provider can take and sell what you’ve used as security.

Unsecured debt consolidation loans

An unsecured loan isn’t backed by business assets, though many providers ask for a personal guarantee instead. Rates and fees are usually higher, amounts can be smaller, and providers will look closely at your credit history.

Top tip: Check your business and personal credit reports before you apply, so nothing on them comes as a surprise.

Business refinance calculator

Add up what you owe now and see how different terms and rates could change your repayments. It’s a rough guide, not a quote.

Current loan

Remaining balance

.00

New loan

New loan term

20 years

Interest rate

This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.

Your results

Principal/loan amount

£0

Monthly payment

£0

Weekly payment

£0

Daily payment

£0

Length

0 months

Total monthly payments

£0

Total interest

£0

Borrow £

How consolidating your debt works with Swoop

Tell us about your business. Share what you do, your revenue and what you’re repaying now.
Connect your business data. Your bank statements show providers your real cash flow and current repayments.
View your funding options. We’ll show you options that could fit, with the trade-offs explained.
Decide whether to go ahead. If you apply and accept an offer, your existing balances are settled and you move to one repayment.

What will lenders need to look at?

Revenue. How much comes into the business each month, and how steady it is.
How you’re repaying now. On-time repayments help. Missed or bounced payments make things harder, but not always impossible.
Affordability. Whether the new repayment fits alongside your other outgoings.
How long you’ve been operating. Many options need at least 12 months.
Credit history. The business’s and, for some options, the directors’.

Every provider has its own criteria, but most will want to understand:

Been declined before? It doesn’t rule this out. Different providers look at things differently, and we’ll tell you what’s realistic for your business right now.

How are debt consolidation loan payments calculated?

Have these ready and things move faster

Bank statements for the last 6 months, for every business account, including any card-payment account
Your latest filed accounts, or management accounts if they’re more recent
Details of what you’re repaying now: provider, balance and how often you repay
ID for each director

Data connection helper: Connecting your business bank account can save you sending statements. It gives Swoop read-only access to your transactions so we can improve your funding options. We cannot move money.

Other ways to pay off commercial debt

If consolidating or refinancing your current loans is not sufficient to help your business, there are other options to relieve business debts that you may wish to consider:

Equity finance: secure the cash you need by selling some of your business ownership to a new investor. This route may be particularly useful for SMEs that own unique technology or own valuable patents or copyrights, as these assets are highly attractive to new investors.
Business grants: unlike loans, business grants do not need to be paid back. Available from central government, councils, universities, non-profits and private sector groups, grants are usually provided to help businesses in specific UK regions, for a key reason, such as urban regeneration, or to help companies in innovative industries.
Restructure your business: sell business assets, close down under-performing business units, or merge with another company to spread your debt load.
Crowdfunding: Rise cash for your business via many small donations from a large number of people, typically by the internet. Funds raised are not a loan and do not need to be repaid as long as you use them for the purposes described in your presentation.

Find your business consolidation loan options with Swoop's business funding platform

Consolidating or refinancing business debt can be complicated and may take longer than many businesses can wait. Swoop is a funding marketplace, not a single provider, so we can look across many providers to find consolidation and refinancing options that could suit your business.

A dedicated funding manager will be your single point of contact, from your first conversation to funding received. Register with Swoop to discover all your consolidation and refinancing options. Reshape your debts. Give your business a new lease of life.

Questions business owners ask us

How are debt consolidation loan repayments worked out?

They're based on how much you borrow, how long you borrow it for, the interest rate and any fees. Most providers give you a fixed monthly repayment, so you know what's going out each month.

Can I repay early?

Often, yes, but it depends on your agreement. Some providers charge a fee to settle early and others give a discount. Check the early settlement terms before you sign, and ask us if anything's unclear.

Will consolidating affect my credit score?

Looking at your options with Swoop doesn't commit you to anything. If you apply to a provider, they may carry out a credit check, which can show on your credit file. We'll tell you before that happens. Over time, keeping up one manageable repayment can be easier than juggling several

Can I consolidate a merchant cash advance?

Often, yes. Some providers will settle a merchant cash advance as part of new funding. Ask your current provider whether there's a discount for settling early.

Can I borrow more than I owe now?

Sometimes. If the business can afford it, some options let you settle what you owe and add extra working capital in the same facility.

Will I need a personal guarantee?

It depends on the provider and the amount. Some ask for one as extra security. We'll explain what it means and any personal commitment before you go any further.

I've missed a repayment. Can I still consolidate?

It can make things harder, but it doesn't always rule it out. Providers look at the reasons and your recent history. Talk to us and we'll tell you what's realistic.

How long does it take?

It depends on the provider and how quickly you can share your documents. Having bank statements and accounts ready is the easiest way to speed things up.

Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

UK SME debt, https://www.ft.com/content/f7940fc4-9950-4f5e-998b-f5fb329d693

Business loans, https://swoopfunding.com/uk/business-loans/

Commercial mortgages, https://swoopfunding.com/uk/commercial-mortgages/

Asset finance and refinance, https://swoopfunding.com/business-loans/asset-finance/

Revolving credit facilities, https://swoopfunding.com/loans/revolving-credit-facility/

Business credit score, https://swoopfunding.com/uk/business-credit-scores/

Grants, https://swoopfunding.com/uk/business-grants/

Equity finance, https://swoopfunding.com/uk/equity-financing/

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

Swoop promise

At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

Find out more about Swoop’s editorial principles by reading our editorial policy.

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Swoop Finance Limited helps UK firms access business finance by working directly with businesses and their trusted advisors. We act as a credit broker, not a lender, and do not provide loans or finance products ourselves. We introduce applicants to a panel of lenders, equity funds, and grant agencies based on individual circumstances and creditworthiness.
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