Refinancing guide · Sorbus Finance
How do you consolidate multiple business loans into one?
Quick answer
To consolidate multiple business loans, build a full schedule of what you owe, get settlement figures for each, decide which debts genuinely benefit from being combined, then compare one new facility against the remaining cost of those debts. Leaving cheap or nearly finished loans out often produces a better result than consolidating everything.
How do you build a debt schedule?
A debt schedule is a single table of every borrowing commitment. It is the foundation of any consolidation conversation and is commonly requested by lenders.
| Column | Why it matters |
|---|---|
| Lender and product | Different products settle differently |
| Outstanding balance | Starting point for settlement |
| Monthly repayment | Shows current cash impact |
| End date | Identifies debts near completion |
| Settlement figure and exit charge | Actual cost to clear |
| Security or guarantee | What needs releasing |
Which debts should you include?
Include debts where combining clearly helps: high-cost short facilities, debts with awkward collection patterns, or ones that create admin strain. Consider leaving out debts that are cheap, almost repaid, tied to specific assets you want to keep separate, or carry heavy exit charges.
Pulling a nearly repaid loan into a long new facility can stretch a small balance over many more years.
What if the loans were taken in quick succession?
Taking several facilities close together, sometimes called stacking, can leave a business with overlapping collections that are hard to service. Lenders may look at this carefully. Being open about how and why each facility was taken helps a lender understand the position.
How do you stop debts building up again?
Close or reduce limits on cleared revolving facilities if you do not need them. Agree an internal rule for future borrowing. Review the debt schedule regularly so it stays accurate.
Consolidation planning
- Complete debt schedule with settlement figures
- Each debt marked include, exclude or undecided with a reason
- Remaining total payable for included debts
- Plan for cleared revolving facilities
When should you not borrow to refinance?
Be candid with yourself. Refinancing is probably the wrong move if:
- Consolidating to clear headroom you intend to use again straight away
- Including debts whose exit charges wipe out any benefit
Free, independent help is available from Business Debtline. Check its eligibility and remit for your business.
General information, not financial, legal or tax advice. This page explains concepts in a UK context. Whether any option is available, and on what terms, depends on the lender, the specific agreement and your business's legal structure. Sorbus Finance is a broker, not a lender. Read our initial disclosure and commission disclosure.
Frequently asked questions
Will one lender take over all my loans?
A consolidation lender provides a new facility used to repay the others. It does not take over the old agreements; those are closed once settled.
Can consolidation include credit cards and overdrafts?
Business credit card and overdraft balances can sometimes be included, depending on the lender. Consider whether you will keep the limits open afterwards.
What if one lender will not provide a settlement figure?
Lenders normally provide figures on request. If one is slow, put the request in writing and keep a record. Without it, you cannot reliably compare.
Prefer to talk it through?
Leave your details to request a discussion about your borrowing. This form is an enquiry, not a loan application. Ask the adviser what consent and credit checks would be needed before a lender application proceeds.
