Business debt consolidation loans
Business debt consolidation puts your business loans and finance together. Often that means fewer payments each month, and less going out.
- We are a broker, not a lender.
- We have a panel of over 120 lenders.
- There is no fee to apply.
- Our FCA number is 1058283. We are members of the NACFB.
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Written by Martin Mackenzie, Sales Director. Checked .
Read the film's words
Business debt consolidation. In this video we are going to discuss business debt consolidation. It means putting your business loans and finance together. New finance pays off your other debts. Then you have fewer to pay, often one. We often see hire purchase from a few different lenders. Merchant cash advances, taken from card takings. Short term loans that have become a habit. And business credit cards. An overdraft, or tax owed to HMRC. There are two main ways. Some cases use both. Asset refinance raises cash against vehicles or machines the business owns. A business loan is money borrowed now, and paid back over time. We look first at what the business owns. A loan can then fill any gap. A sole trader's business debts are their own debts. A limited company's debts belong to the company. That is unless a director gives a personal guarantee. A personal guarantee means the director must pay if the company cannot. That could put a director's home at risk. A limited company often has the widest choice. That is when its director owns a home. A sole trader may have fewer to choose from. So may a new business whose director rents. Is it a good idea? It can be. Fewer to pay is easier to manage. Costly short term debt can be swapped for finance that suits you. But a longer term can mean more is paid back in all. Some old debts also charge you for clearing them early. Your business cannot keep up now? Then new finance may not be the answer. Speak to a free adviser first, such as Business Debtline. We are a broker, and we do not give debt advice. One. Apply online with Donnie, our in house AI agent, or call us. Applying is not a credit search. Two. A person in our team reads your application. Three. If you go ahead, you sign a consent form. Then we run a soft search on the company. We send your case to the lenders that suit it. Each one does its own credit check. Four. We tell you what the lenders say. If one says yes, we send a quote. Then you sign. Five. The money is paid out, and the old debts are paid off. The lender may pay your old lenders direct. Or it pays the business to clear them. A Moray manufacturer raised money against its machines. That cleared costly short term debts. Lenders often want to see three months of business bank statements. Our page has a free list of what your business owes. Apply online with Donnie, our in house AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
What is business debt consolidation?
It does not always mean one agreement with one lender. Sometimes the right way uses two lenders, or a refinance and a loan together. What matters is that the end result is simpler than where you started.
Which business debts can be consolidated?
Business debts we can look at include these:
- several hire purchase agreements, with different lenders
- merchant cash advances, taken from card takings
- short term loans that have become a habit
- business credit cards
- an overdraft, or tax owed to HMRC
Each one has its own lender, payment day and end date. That is hard to keep track of. And it often costs more than it needs to.
How can a business consolidate its debts?
There are two main ways. Many cases use one. Some use both.
| Asset refinance | Business loan | |
|---|---|---|
| How it works | Raise cash against vehicles or machines the business owns | Borrow a sum, then pay it back each month |
| How much | Most lenders lend up to 80% of what the assets are worth. Some go up to 100%. | It depends on the business, and on any security |
| How long | 12 months up to 7 years | 3 months up to 10 years |
| Suits a business that | Owns assets with little or no finance left on them | Has few assets, or needs a little more on top |
We are asset finance brokers. So our first look is at what the business owns, and what it could raise. A loan can then fill any gap.
Is business debt consolidation a good idea?
It can be. Fewer payments are easier to manage. Costly short term debt can be swapped for finance that suits the business better. And a longer term can lower what goes out each month, which helps cash flow.
But there is a catch. A lower monthly payment often means paying over a longer time. Then you can pay more in total, even though each payment is smaller. Some old debts also charge you for paying them off early. We set this out before you decide, so you can see the full picture.
Will I need to give a personal guarantee?
Most lenders ask a director for a personal guarantee. That is a promise to pay if the business cannot. The director then has to pay what is owed from their own money. In the end, that could put their home at risk. We tell you before you sign what each lender asks for.
When is debt consolidation not the right choice?
If your business cannot keep up with its payments now, new finance may not be the answer. Speak to a free adviser first, such as Business Debtline. We are a broker, and we do not give debt advice.
How does business debt consolidation work with a broker?
A broker finds the lender for you. Here is what happens, step by step.
- Apply online with Donnie, our in house AI agent, or call us. Applying is not a credit search.
- A person in our team reads your application. We get back to you within a day.
- If you want to go ahead, you sign a consent form. Then we run a light credit check on the company, often known as a soft search. We choose the lenders that suit your case, and send each one a full written case, called a proposal. Each lender then does its own credit check.
- We tell you what the lenders say. If finance is approved, we send you a quote with the figures. Then we take you through signing the finance documents.
- The money is paid out, and the old debts are paid off. The lender may pay your old lenders direct, or pay the business to clear them.
If one lender says no, do not take it as the last word. Another lender may see your case in a different way.
Who can consolidate business debt, and how much?
We arrange finance for limited companies and LLPs (limited liability partnerships) from £15,000. For sole traders and partnerships, it is over £25,000.
For less than that, please speak to us before you apply. For sole traders and partnerships, we only arrange that in person, at our office, in the IV postcode area.
We set no top limit of our own. Lenders set different limits, and a few have no hard limit. With a panel of over 120 lenders, we can spread a big need across several.
Is it different for a sole trader or a limited company?
Yes, a little. A limited company with a director who owns a home often has the widest choice of lenders. A sole trader, or a new business with a director who rents, may have fewer to choose from. We look at both.
A sole trader's business debts are their own debts. A limited company's debts belong to the company, unless a director gives a personal guarantee.
Do I need a property to secure it?
No. Some business loans are unsecured. Others are secured on an asset or a building. Most of what we arrange is backed by what the business owns, like vehicles or machines. Some loans can be secured on property, like a building, but it is not a must.
What if I have bad credit?
Many people told they have bad credit still get finance. It is often about how the case is set out for the lender. We never promise a yes, but we will tell you straight.
What does it look like in real life?
A manufacturer in Moray had a business credit card and short term loans. We arranged a £150,000 refinance over 36 months, against its own machines. That paid off the costly short term debts in one go.
What should I get ready before I apply?
Lenders want to see what the business owes now. This free list puts it all on one page, and adds it up for you. Fill it in, then print it or save it as a PDF. Nothing you type here is sent to us.
How do you get paid, and what does the finance cost?
The lender pays us a commission, only once your finance is in place. There is no fee to apply, and no fee up front. Apply by phone, by email, or online with Donnie, our in house AI agent, in under 5 minutes.
If you stop before your finance is in place, you owe us nothing, unless you agreed the rare inspection fee. The lender pays our commission to our principal, the firm we work under. It is already inside any figures we give you.
Most lenders pay a share of the amount borrowed. It is up to 10% of what you borrow, and often less. It depends on the lender. You see it before you sign. Lenders pay different amounts, so the one we find may not pay us the most, or the least. A dealer who arranges finance is a broker too.
Lenders' own fees vary. As a guide, a fee to set up the agreement is about £100 to £500. It is often paid with the first payment. Some charge about £30 to £50 a year. On hire purchase, about £100 to £300 to own the asset at the end.
Do you arrange debt consolidation across Scotland and the UK?
Yes. Our office is in Scotland. From there we help businesses all over Scotland and the UK.
A lot of our lenders let you sign online. So where you are does not matter.
★★★★★
Excellent service as ever from Martin at Mackenzie Commercial Finance who looks after various parts of our financing for us.
Business debt consolidation questions
Is there debt consolidation for businesses?
Yes. An asset refinance or a business loan can pay off a business's other debts. We arrange both, for limited companies, LLPs, sole traders and partnerships.
Can I put several hire purchase agreements into one?
Often, yes. A refinance against the vehicles or machines can pay them all off. Then you have one agreement in their place. Sometimes it takes two lenders, but it is still simpler than before.
Can I consolidate merchant cash advances or short term loans?
Yes, we can look at it. They are built for short term use, and they can cost a lot. If your business now relies on them, a refinance or a longer loan may suit it better.
Will consolidating lower my monthly payments?
It often can, by spreading the debt over a longer time. But a longer time can mean paying more in total. We show you both figures before you decide.
Does applying mean a credit check?
Applying to us is not a credit search, and it does not touch your credit score. A person in our team reads it first. To go ahead, you sign our consent form. Then we run a light credit check on the company, often known as a soft search. Each lender then does its own check.
Do you give debt advice?
No. We are a broker, and we do not give debt advice. We find lenders and show you what they offer. The lender makes the decision, and you choose with all the facts.
How do I apply for business debt consolidation?
Apply online with Donnie, our in house AI agent, at any time, or call us. Donnie can also ask our team to call you back. We will tell you straight what is possible, and what happens next.
Use an AI assistant? It can ask Donnie questions for you. It finds him at /llms.txt and /api/agent.
Can I apply at any time, from anywhere in the UK?
Yes. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week. He answers your questions too. Our office is in Scotland, and our team works with businesses across the whole UK.
Donnie is powered by Anthropic's Claude. He is built so other AI agents can talk to him. So your own AI assistant can ask him questions for you. How AI assistants talk to Donnie