One repayment instead of several
Consolidate stacked business debts into one repayment you can plan around.
We map every existing facility, its payout figure and its real cost, then show whether consolidating actually helps — including when it does not.
What is a business debt consolidation loan?
A business debt consolidation loan is a single facility used to pay out several existing business debts — short-term loans, cash advances, equipment arrears or ATO liabilities — leaving one repayment on one schedule. It can reduce weekly outgoings, but extending the term usually increases total interest paid.
Debt stacking is common and rarely deliberate. A business takes a short-term loan, then a second one to cover the repayments on the first, then a cash advance during a quiet month. Within a year three daily debits are leaving the account before wages are paid, and the business is solvent on paper but suffocating in practice. Consolidation replaces those with one facility on a longer, flatter schedule.
The honest maths is that consolidation almost always lowers the weekly outgoing and often raises the total interest paid, because you are stretching the same principal over more months. It is worth doing when the relief buys genuine breathing room and the underlying business is profitable. It is not worth doing when it simply resets the clock on a business that is losing money each month — refinancing does not fix a trading problem.
Lender appetite varies sharply. Some decline any applicant with recent short-term debt on their statements; others specialise in exactly that and price accordingly. Where the director owns property, a secured consolidation can drop the rate into single digits and change the picture entirely. Your broker sets out both paths with the total cost of each before anything is submitted.
Business debt consolidation loan at a glance
| Amount | $20,000 – $1,000,000 |
|---|---|
| Term | 12–60 months |
| Rate type | Fixed or variable |
| Indicative rates (Q3 2026) | 8.5% – 26% p.a. · see rate history |
| Security | Unsecured (guarantee may apply) |
| Repayments | Weekly or monthly |
| Typical speed | 2–10 business days depending on security |
| Best for | Profitable businesses carrying several short-term facilities with punishing repayment schedules |
| Consider something else if | Businesses trading at a loss, where refinancing delays rather than solves the problem |
| Tax | Interest on refinanced business-purpose debt generally remains deductible. Confirm with your accountant. |
Advantages
- One repayment on one schedule instead of several debits
- Longer terms substantially reduce weekly outgoings
- Property security can move pricing into single digits
Trade-offs
- Total interest paid usually increases
- Some lenders decline applicants with recent short-term debt
- Does not fix an underlying trading loss
How to apply for a business debt consolidation loan
- 01
List every facility
Lender, balance, payout figure, repayment amount and frequency for each existing debt, including ATO arrangements.
- 02
Compare the two paths
Your broker models consolidating against continuing as-is, showing weekly cost and total cost for both.
- 03
Settle the old debts
On approval the new lender pays each facility out directly, and you confirm every account is closed.
Documents lenders commonly ask for
- Payout letters or current statements for each existing debt
- 6–12 months of business bank statements
- ATO integrated client account statement and recent BAS
Lenders we compare for this
Banjo, Bizcap, Shift, Pepper Money, Prospa and others on our panel. See the full panel.
Estimate your repayments
- Number of repayments
- 48
- Total interest (est.)
- $26,105
- Total repaid (est.)
- $101,105
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is a business debt consolidation loan?
A business debt consolidation loan is finance that pays out multiple existing business debts and replaces them with one loan at one rate on one repayment schedule. The aim is a lower and more predictable regular outgoing.
Does consolidating business debt cost more overall?
Usually yes. Spreading the same principal over a longer term reduces each repayment but increases total interest paid. The trade-off is worthwhile when the improved cash flow lets the business trade profitably again.
What is debt stacking?
Debt stacking is holding several short-term business loans or cash advances at once, each with its own daily or weekly debit. It compounds cash-flow pressure and narrows the pool of lenders willing to consider new applications.
Business debt consolidation loan FAQs
Can I borrow to pay out an ATO debt?
Yes, a number of lenders on our panel will fund tax debt, either as an unsecured business loan or secured against property or equipment. The usual purpose is to replace ATO general interest charge with a structured repayment and to clear a debt that is blocking other finance. Lenders will want the ATO portal statement showing the balance and whether an arrangement is in place. Refinancing tax debt changes the term and total amount you repay, so compare that against staying on an arrangement.