Refinance or Consolidate Business Borrowing to Improve Monthly Cash Flow

Summary: In many cases businesses can refinance or consolidate existing borrowing to reduce monthly repayments and improve cash flow. UK Business Loans is a free introducer service that matches limited companies and LLPs (loans from around £10,000+) to lenders and brokers offering refinance, consolidation and working capital solutions. Complete a quick, no‑obligation Free Eligibility Check to see options for lowering monthly outgoings — Get Quote Now.

Free Eligibility Check — Get Quote Now

How UK Business Loans helps businesses refinance or consolidate debt

UK Business Loans is a specialist matchmaker for business finance: we don’t lend and we don’t give regulated financial advice. Instead we collect a few details via a simple enquiry form and use that information to match your company with lenders and brokers who can offer refinancing, consolidation or restructuring options.

Our service is free, confidential and obligation‑free: supply basic business details and a brief summary of your borrowing, and we’ll put you in touch with partners who are best placed to help. Start with a Free Eligibility Check — Get Quote Now.

Can UK Business Loans help you refinance or consolidate existing borrowing?

Short answer: yes — in many cases. We match businesses to lenders and brokers that offer refinance and consolidation solutions tailored to company needs. Whether you have multiple business loans, high‑rate merchant facilities, invoice financing or a commercial mortgage you want to remortgage, our partners can often create a plan to lower monthly outgoings or simplify repayments.

Important: suitability and outcomes depend on your company’s financials, security available and lender criteria. We’ll only share your enquiry with suitable partners and you decide whether to proceed with any quote. Get Quote Now

For background reading on broader business finance options, see our guide to business finance.

How refinancing or consolidation reduces monthly payments

1) Extend term or reduce interest rate

Switching to a lower interest rate or extending the repayment term spreads costs over a longer period, typically reducing the monthly outlay. Example: a £100,000 loan at 12% over 3 years costs ~£3,323/month; remortgaging at 8% over 5 years reduces payments to ~£2,026/month — freeing ~£1,297/month in cash flow.

2) Consolidate multiple high‑cost facilities

Multiple expensive products (merchant cash advances, short‑term loans, cards) often carry high APRs and separate payment schedules. Consolidating into one lower‑cost facility reduces admin, interest and the peak monthly burden.

3) Move from short‑term to longer‑term or secured finance

Secured facilities (e.g., against property or assets) generally offer lower rates, though they increase risk to secured assets. Moving from short‑term high‑cost borrowing to a longer‑term secured loan often reduces monthly payments — but can increase total interest paid over the life of the loan.

Quick example (mini case): A construction company with several short-term loans and equipment finance reduced combined monthly payments from £9,200 to £6,000 by consolidating onto a 5‑year secured term loan and refinancing key equipment — freeing £3,200 monthly to cover wages and materials.

Types of refinance & consolidation solutions we can match you with

• Business loan refinance (unsecured/secured): Typical term 1–10 years. Use-case: replace expensive overdrafts or short-term loans. Outcome: lower rate, single monthly payment.
• Commercial mortgage remortgage: Terms often 5–25 years. Use-case: reduce mortgage rate or extract equity. Outcome: lower mortgage payment or lump sum release.
• Invoice finance / factoring: Short-term facility against unpaid invoices. Use-case:free up working capital without long-term borrowing. Outcome: improves liquidity to meet monthly costs.
• Asset refinance / asset finance: Release equity from machinery, vehicles. Use-case: refinance existing asset facilities to reduce payments. Outcome: cash release or lower payments by extending term.
• Debt consolidation loans: Single loan to replace multiple credit lines. Use-case: simplify payments and reduce rates. Outcome: fixed monthly repayment and clearer budgeting.
• Merchant cash advance refinancing: Replace turnover‑based repayments with a fixed loan. Use-case: reduce day‑to‑day drain on card receipts. Outcome: stabilised monthly cashflow.
• Specialist broker-managed restructuring: Complex cases (CVAs, multi-lender restructuring). Use-case: bespoke plans for firms in stress. Outcome: negotiated schedules and professional mediation.

Who can usually refinance or consolidate? Eligibility & who benefits most

Typical candidates:

• Limited companies (Ltd) and LLPs seeking £10,000 and up
• Businesses with steady turnover and clear cash forecasts
• Sectors commonly helped: construction, hospitality, retail, transport, healthcare, manufacturing and logistics
• Companies with multiple short‑term, high‑cost facilities looking to simplify payments

Note: We do not arrange finance for sole traders or individual professions through this service. To check if you’re eligible — Free Eligibility Check — Get Quote Now.

The refinance process: step-by-step (what to expect)

1. Complete our short enquiry form (2 minutes). This is an information request only, not an application.
2. We match you to 2–5 lenders or brokers suited to your business and borrowing profile.
3. Receive contact from partners with free quotes or requests for further information (usually hours to 3–5 working days).
4. Compare and decide — you choose a lender or broker to proceed with; we do not provide regulated advice.

Start your match now: Get Quote Now

Costs, risks and important considerations

• Fees: Arrangement fees, broker fees, valuation or legal costs may apply. Confirm all fees up front with the lender/broker.
• Early Repayment Charges (ERC): Check if exiting an existing loan triggers ERCs — these can reduce or eliminate expected savings.
• Secured vs unsecured: Secured refinancing can lower rates but puts assets (property, equipment) at risk if you default.
• Total cost vs monthly saving: Lower monthly payments can mean higher total interest over a longer term — weigh both factors.
• Credit checks: Submitting an enquiry does not affect your credit file. Lenders may perform soft or hard searches later; they will advise before a hard search.
• No regulated advice: UK Business Loans introduces you to providers; we do not provide regulated financial advice. Any advice or offer comes from the broker or lender you choose to work with.

Real examples (anonymised)

Case study 1 — Hospitality (Midlands)
A 50‑seat restaurant had three high‑rate short‑term loans and a merchant facility. Monthly debt servicing was £6,400. After matching, the business consolidated into a 4‑year term loan and refinanced the merchant facility. Monthly payments fell to £3,900 — freeing £2,500 per month to rebuild stock and cover staff costs.

Case study 2 — Manufacturing (North West)
A manufacturing SME repaid an expensive invoice finance line by moving to a longer‑term asset refinance against machinery and a lower-rate term loan. Combined monthly outgoings dropped by £4,000; improved predictability allowed the company to take on a new contract.

Frequently asked questions

Will refinancing always reduce my monthly payments?

Not always. Reductions are possible if rates fall, terms are extended, or high‑cost facilities are consolidated. Always compare fees, ERCs and total interest.

What costs should I expect?

Arrangement or broker fees, legal and valuation fees, and potential early repayment charges. Ask partners for full cost schedules before committing.

How quickly can I get an offer?

Initial matching and contact often happen within hours; formal offers depend on lender due diligence and can take several days to weeks.

Will UK Business Loans check my credit?

Filling our enquiry form does not affect your credit score. Lenders/brokers may carry out soft or hard checks later — they will inform you before any hard search.

Can I refinance with adverse credit?

Possibly. Some specialist lenders and brokers consider imperfect credit, but offers and rates vary. We’ll match you to partners experienced in those cases.

Ready to check if refinancing can improve your monthly cash flow?

If you want to explore whether refinancing or consolidating your business borrowing could lower monthly payments, the fastest way is to complete a short enquiry. It takes around two minutes, is free and non‑binding — and it lets our partners present tailored options for your business.

Free Eligibility Check — Get Quote Now

1. How can refinancing or consolidating business loans improve my monthly cash flow?
– By matching you with lenders and brokers who can lower your interest rate, extend terms or combine high‑cost facilities into a single loan, which can reduce monthly repayments and simplify cashflow.

2. What loan sizes can I seek through UK Business Loans?
– Our partners typically handle loans from around £10,000 up to multi‑million sums, depending on lender criteria and your business needs.

3. Will submitting a Free Eligibility Check or enquiry affect my company credit score?
– No — completing our short enquiry form is an information request only and does not affect your credit file, though lenders may carry out soft or hard checks later if you progress.

4. How quickly will I be matched with lenders and receive quotes?
– You can be matched within hours and often receive initial contact the same working day, while formal offers depend on lender due diligence and can take days to weeks.

5. What costs should I expect when refinancing or consolidating business borrowing?
– Expect possible arrangement or broker fees, valuation, legal costs and potential early repayment charges (ERCs), so always compare total cost versus monthly savings before committing.

6. Can I refinance or consolidate if my business has adverse or imperfect credit?
– Possibly — some specialist lenders and brokers work with businesses that have imperfect credit, and our matching service will try to connect you with partners who may consider your case.

7. Do I need to provide security to get lower rates when refinancing business debt?
– Not always, but secured refinancing (e.g., against property or assets) often gives lower rates and longer terms while increasing the risk to secured assets if you default.

8. Is UK Business Loans a lender and do you provide regulated financial advice?
– No — we are a free introducer that matches businesses to FCA‑regulated lenders and brokers and do not lend money or provide regulated financial advice.

9. What information do I need to complete the enquiry and how long does it take?
– You’ll need basic business details, turnover, borrowing required or existing facilities, purpose of funds and contact info — the Free Eligibility Check takes around two minutes and is not a loan application.

10. Which types of businesses and sectors can use UK Business Loans to refinance or consolidate debt?
– We typically help limited companies, LLPs, start‑ups and SMEs across sectors like construction, hospitality, retail, transport, healthcare, manufacturing and logistics seeking finance from around £10,000 upwards.