- Who it's for
- UK Ltd companies, PLCs and LLPs with multiple existing business debts
- Typical amounts
- £10,000 up to £1,000,000, sized to clear existing balances
- Typical terms
- 6 months to 5 years
- Minimum turnover
- £100,000 a year to use Lending Box
- Security
- Often unsecured with a personal guarantee; secured options can extend terms and amounts, at the risk of any asset put up
Indicative only. Subject to lender assessment and approval.
Who it's for
- Businesses repaying several short-term loans or a merchant cash advance at once, with repayments eating into cash flow.
- Companies whose existing debts carry high combined monthly costs that a single, longer-term facility could spread more comfortably.
- Businesses wanting one clear repayment date and amount instead of tracking several separate agreements.
- Directors who feel current repayment commitments are becoming difficult to manage, before the situation becomes urgent.
How it works
- 1You tell us about each existing debt — the lender, balance, remaining term and monthly repayment — along with the amount you're looking to raise.
- 2We compare your position against lenders who offer consolidation or refinance facilities, based on your bank statements and accounts.
- 3If an offer is suitable, the new lender typically settles the existing debts directly, or provides funds for you to repay them yourself.
- 4You're then left with a single new facility and one monthly repayment, on terms agreed with the new lender.
Is consolidation the right move?
Consolidation can genuinely help when the issue is the shape of your repayments — too many, too frequent, too high combined — rather than the underlying business performance. It's worth being honest about which applies before committing to a new facility.
- Add up the total monthly cost of all existing debts and compare it honestly to what a consolidated facility would cost, including any new fees.
- Check early settlement figures for each existing debt — some lenders charge a fee for repaying early, which reduces the saving.
- Consider whether turnover has genuinely slowed, in which case a smaller facility and a conversation with existing lenders may be more appropriate than fresh borrowing.
What lenders look for in a consolidation request
A lender offering to refinance existing debt wants comfort that the new, larger facility is affordable and that consolidation will actually improve the business's position.
- A clear list of existing debts with balances, remaining terms and monthly costs.
- Bank statements showing turnover that supports the new consolidated repayment.
- An explanation of how the business ended up with multiple facilities, and what's different going forward.
- No pattern of taking on new short-term debt every few months, which can suggest consolidation alone won't be enough.
Secured vs unsecured consolidation
Both routes exist, and the right one depends on the amounts involved and what you're willing to put up.
- Unsecured consolidation loans rely on a personal guarantee and tend to suit smaller, shorter consolidations.
- Secured consolidation loans, backed by commercial or residential property, can allow larger amounts and longer terms — but your property is at risk if you don't keep up repayments.
- A broker can set out both routes so you understand the trade-off before choosing.
Alternatives worth considering
Consolidation isn't the only option, and for some businesses it isn't the right one.
- Speaking directly to existing lenders about restructuring repayments, which sometimes avoids new borrowing and fees altogether.
- A working capital facility that replaces the need for several separate short-term products going forward.
- Formal advice from an insolvency practitioner or licensed debt adviser if repayments are becoming genuinely unmanageable — this is a different service from business finance brokering, and we'll say so if that looks like the right route.
How a broker helps
Consolidation involves comparing several existing agreements against a new one, including fees on both sides, which takes time to do properly. As a whole of market broker, we gather the detail on your existing debts, compare realistic consolidation offers across the market, and set out the true cost side by side so you can see whether it genuinely helps.
Our service is free to your business. We're paid a commission or finder's fee by the lender if finance completes; see our Broker Terms for details.
Eligibility
- A UK limited company, PLC or LLP (we can't help sole traders or partnerships).
- Annual turnover of at least £100,000.
- Clear detail on existing debts, including any early settlement figures or exit fees.
- A business bank account showing income that supports the new, consolidated repayment.
- Directors willing, in most cases, to give a personal guarantee.
Documents you'll need
- Statements or settlement figures for each existing debt you want to consolidate.
- 3–6 months of business bank statements.
- Latest filed accounts, and management accounts if available.
- Details of any security already given against existing debts.
- Photo ID and proof of address for directors.
Advantages
- One repayment date and amount instead of several, which can make cash flow easier to plan.
- Can spread the total cost over a longer term, reducing the combined monthly outgoing.
- May remove the need to juggle lenders chasing on different dates.
- Can be a way to replace high-cost short-term borrowing with a more structured facility.
Things to weigh up
- A longer term can mean paying more in total interest and fees over time, even if monthly payments fall.
- Early settlement of existing debts may carry exit fees or charges, which need to be factored into the sums.
- Consolidating doesn't fix an underlying cash flow problem on its own — if spending habits don't change, new debt can build up again.
- Secured consolidation loans put the secured asset, which may include your property, at risk if repayments aren't kept up.
Worked example (illustrative)
A logistics company has three facilities running: a £15,000 loan with 8 months left, a merchant cash advance taking a daily share of card sales, and a £6,000 balance on a business credit card. Combined monthly outgoings are tight against turnover.
A lender offers to consolidate these into a single £35,000 facility over 24 months, settling the existing balances directly.
Using the business loan calculator below, £35,000 over 24 months at an illustrative 15% a year works out at roughly £1,690 a month. The real rate and any settlement fees depend entirely on the lenders involved.
Business loan calculator
Monthly repayment
£2,307.25
- Total repayment
- £55,373.91
- Total interest
- £5,373.91
Representative example: borrowing £50,000 over 24 months at 10% a year would cost £2,307.25 a month, £55,373.91 in total, including £5,373.91 interest.
Illustrative only. Your actual rate depends on your circumstances. Indicative only. Subject to lender assessment and approval.
Frequently asked questions
Related guides
Lending Box helps UK businesses access business finance, working directly with businesses and their trusted advisers. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 or over, and terms and conditions apply. Guarantees and indemnities may be required. Lending Box can introduce applicants to a number of providers based on each applicant's circumstances and creditworthiness. We can also make insurance introductions. Lending Box will receive a commission or finder's fee for arranging such finance and insurance introductions. Broker Terms