Business debt consolidation loan
How to get approved for consolidating multiple short-term business debts into one longer-term business loan (typically 24–60 months).
If you’re reading this, there’s a good chance you’re not looking for “more debt”.
You’re looking for relief. One repayment. One plan. Something that stops the week being dictated by direct debits.
This guide explains what’s usually realistic in Australia, what lenders tend to look at, what can quietly ruin an approval, and how to position a consolidation properly — so it’s assessed as a sensible restructure, not a high-risk bailout.
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You open your banking app in the morning and you already know what you’re about to see.
A direct debit has hit, then another one, then another.
Nothing’s “wrong” with the business. You’ve got customers, you’re trading, but the repayments are now running the week.
And the worst part is the mental load. You’re thinking about the bank account more than the business itself.
If that’s where you’re at, you’re not alone. This page explains how debt consolidation is actually assessed, and what usually needs to be done to get it approved properly.
Who this is for / not for
Who this page is for
Australian businesses trading 2+ years
Owners with multiple short-term business debts (typically 6–12 month terms)
Businesses that are trading, but repayments are bleeding cash flow
Anyone who wants a plan to consolidate debts properly (not “try your luck”)
Who it’s not for
Personal/consumer debt consolidation
Credit card consolidation
Anyone wanting to add another loan without paying out existing debts
Anyone planning multiple applications quickly “to see what sticks”
Why I built this guide
I built this guide because the most important part of debt consolidation is the part business owners almost never see:
Timing. Structure. And the credit story behind the scenes.
Most owners only learn how the system works after they’ve taken the wrong type of finance — usually after it starts squeezing the business day-to-day.
This isn’t fear-mongering. It’s just the reality of how short-term business lending can play out when repayment pressure becomes the main thing the business has to manage.
Content reviewed for accuracy by Michael Pajar (Director, CASEY).
Last reviewed: 27 January 2026.
My goal here is simple: help you understand what lenders need to see, so you don’t waste time, don’t waste enquiries, and don’t lose confidence in your business because the structure was wrong.
Quick reality answers
What is a business debt consolidation loan? One facility that pays out multiple existing business debts, replacing them with one repayment.
Is it harder to get approved than a normal loan? Often, yes — because the new lender is taking on all existing liabilities at once, meaning higher risk for them.
Best time to restructure? Early — when you first realise the repayments are too tight. Even if you have a solid cash buffer — some people wait then unfortunately get stuck.
Second-best time? Before the very first dishonour / payment reversal. When average cash balance starts to get low.
What changes after a dishonour? Many lenders treat it as a red-alert risk signal, which can narrow options.
Can terms be 24–60 months? Often possible depending on structure and security (sometimes including property security or a capital raise on unencumbered assets for longer loan terms).
What matters most? Bank statement conduct, an explainable credit report, a clean payout plan, and a restructure story that matches the evidence.
What debts can be consolidated? Short-term business loans, factor rate loans, merchant cash advances, manageable ATO arrears, and more. Scenario-dependent.
What happens at settlement? Lenders will often request paying out the debts directly via the bank account details in the payout letters.
How long it usually takes? These applications can take as fast as 48 business hours if everything is ready. Timeframes are depend on your specific scenario, credit assessment queues, and payout letters (please note: requesting payout letters can take hours to day and is best requested after our initial review).
Contents
Use the contents below to jump to what you need. Each section links back here.
At a glance
This guide is for businesses that:
have multiple short-term debts and frequent repayments
feel repayments are driving the week
want one longer-term structure to pay out multiple debts
want to understand how to position a consolidation so it has the best chance of approval
100% free · No application without consent
The situation this page is for
This usually doesn’t start with chaos.
It starts with something normal: a slow month, a late-paying customer, a big tax bill, a stock purchase, a gap between invoices and wages.
A lender says yes quickly.
It feels like oxygen.
Then the repayments kick in — daily, or if you’re lucky, weekly.
And slowly, the business stops being run off a plan and starts being run off a bank balance.
If you’re here, you might recognise the feeling:
you’re trading, but you’re not building stability
you’re thinking about repayments more than customers
you’re losing confidence, not because you can’t run your business — but because the structure is too tight
Seen in practice #1 (common pattern)
A business was trading well, but multiple direct debits were draining cash before the week even started. Turnover looked fine, yet the business felt like it couldn’t breathe. Once the debts were mapped cleanly and the request was framed as a formal restructure with a clear breakdown, the assessment finally became about risk reduction — not desperation.
What a business debt consolidation loan is
A business debt consolidation loan is a facility used to pay out multiple existing business debts, replacing them with one repayment.
The purpose is usually:
reduce repayment pressure
simplify commitments
create a structure the business can actually maintain
restore predictability so the business can plan again
This is important: consolidation is not just “a loan”.
In most cases, lenders treat it as a restructure decision.
They’re asking:
“Does this improve the risk position?”
“Does this lower repayment pressure meaningfully?”
“Is the payout clean?”
“Does the new repayment fit the way the business earns money?”
Why consolidation is hard to get approved
Consolidation can be harder than a standard loan because a lender is taking on all existing liabilities in one decision.
They’re not just lending new money.
They’re agreeing to step in, pay out other creditors, and become the one lender holding the risk.
That’s why the bar is higher for:
clarity (exactly what debts exist, and what gets paid out)
consistency (the explanation must match evidence)
conduct (what the bank statements show)
structure (does this actually stabilise the business?)
The timing trap: why acting early matters
This is one of the most common scenarios I see.
A business owner feels pressure, starts searching online, sees a lot of ads, and speaks to a lender directly.
Every lender has a different target market.
Different pricing models. Different terms. Different repayment frequency.
Most owners don’t know the difference until they’re already inside it.
So they take the first option they can access.
And for a moment, it feels like the problem is solved.
But if the repayments are too frequent — and the term is too short — the “solution” can quietly become the next problem.
The best time to restructure is early
If you’ve taken a facility and you already feel:
“this repayment is too aggressive”, or
“this term is too short for what I used it for”, or
“my week is now built around direct debits”
…the best time to explore consolidation is as soon as you notice it.
Because while the business is still meeting repayments cleanly, more options tend to remain realistic.
The second-best time is before the first dishonour
A dishonour (payment reversal) is when a direct debit comes out and is then credited back because there weren’t sufficient cleared funds.
Some lenders treat dishonours as a bright-line risk signal — not because a business is “bad”, but because it can indicate the structure is already under strain.
That doesn’t mean “no options”.
It means the file often needs to be positioned very carefully and supported by cleaner evidence.
Seen in practice #2 (what changes after a dishonour)
An owner was coping until the first repayment reversal occurred. From then on, the conversation shifted from “can we restructure?” to “how do we show stability again and explain the timeline cleanly?”
Exploring restructure earlier usually keeps the story simpler and the assessment more straightforward.
What lenders are really deciding
A lender that consolidates debts is usually trying to get comfortable with four things:
Risk reduction is real
The new structure meaningfully reduces repayment pressure.The story matches the statements
The “why” behind the debts makes sense when bank statements are reviewed.Payout is clean
One facility replaces many, with balances and payouts clearly evidenced.Improved cash flow
The new repayment genuinely improves average cash balance
This is why consolidation is often safer when structured properly: it’s not just the numbers. It’s how you present the entire credit story.
Who is behind CASEY?
I’m Michael, and I review these scenarios by starting with the bank statements and the current repayment load, then working backwards to what a lender will actually be able to approve.
If a restructure is not realistic right now, I’ll tell you early so you don’t waste time or rack up unnecessary enquiries.
Nothing gets lodged without your consent.
Before vs after (and the honest trade-offs)
Before
multiple repayments hitting daily/weekly
cash flow pinned early in the week
decisions become reactive
confidence drops because the business feels like it’s running on the edge
After
one repayment instead of many
a loan term that matches the purpose (commonly 24 months+)
repayment aligned to trading rhythm
predictability returns and the business can plan again
Trade-offs (worth understanding)
longer terms can reduce pressure but may increase total cost over time
not every debt is always suitable to roll in (depends on policy and payout rules)
consolidation works best when paired with a plan to avoid re-stacking
What lenders look at first
For consolidation, lenders commonly start with:
at least 6-12 months business bank statements
existing liabilities and total repayment load
conduct (how repayments and cash flow behave)
clarity: what gets paid out, and why the new structure stabilises risk
consistency: does the explanation match the timeline?
One important point: lenders often care less about a perfect story and more about a consistent story that matches the evidence.
The lender-ready blueprint (how to present it properly)
A consolidation request is usually strongest when it’s clean and lender-ready from the start.
1) Liabilities map (current state)
A clear list of:
each facility
current balance
repayment amount + frequency
remaining term (if known)
total repayment pressure (monthly equivalent)
2) Payout plan (settlement state)
A clear plan showing:
which debts will be paid out
payout figures evidenced by statements/payout letters
confirmation the new structure replaces the old one (not adds to it)
3) Credit story (why it works)
A short, consistent explanation of:
why the debts were taken at the time
what changed (cash flow timing, margins, expenses, seasonality, one-offs)
why the new repayment is sustainable
what reduces the likelihood of re-stacking after consolidation
4) Evidence pack
Usually includes:
bank statements (at least 6 months; often 6–12 reviewed)
entity docs and IDs
liability statements / payout figures
a short written summary that matches the timeline
How longer terms (24-60 months) are usually achieved
Longer terms become more realistic when the structure reduces risk — and security can help.
Without property security (sometimes possible)
Depends on:
trading consistency
repayment fit after payout
clean liabilities + payout plan
credible story supported by statements
typical term 24-36 months
With property security (often helps)
Where suitable, property security can:
support longer terms (commonly 36–60 months)
reduce risk when paying out multiple creditors
improve the chance of a clean “one facility replaces many” outcome
Capital raise against unencumbered vehicles/equipment (subject to asset condition)
In some cases, unencumbered business assets can support:
a cleaner payout outcome
reduced repayment pressure
a longer, more manageable structure
Assets that can be use include:
Vehicles, trucks & trailers
Equipment & machinery (limited options)
No pathway is automatic.
The structure still needs to make sense on the statements.
A lender-ready liabilities snapshot example
Illustrative only (not advice).
Current structure (example)
Facility A: short term, frequent repayments, used to cover a timing gap
Facility B: short term, frequent repayments, taken later under pressure
Facility C: short term, frequent repayments, layered on during a tight period
Result: multiple repayments consuming working cash and increasing volatility
Proposed structure (example)
one consolidation facility that pays out A, B, and C
one repayment aligned to trading cycle
longer term designed to reduce pressure and stabilise cash flow
Result: the lender can clearly see risk reduction and justify the restructure
Common mistakes that trigger fast declines
These are common trip-wires that waste time (and can create avoidable enquiry footprints):
applying after dishonours without clarifying the timeline and showing stability
stacking another facility instead of cleaning up the structure
asking for “consolidation” but keeping multiple debts open
requesting a structure that doesn’t fit cash flow timing
changing the story between lenders
applying without a clean liabilities list
FAQs
Can I consolidate multiple short-term business debts into one loan?
Often, yes — if the new structure clearly reduces risk and evidence supports serviceability after payout.
Do lenders require debts to be paid out in full?
Many prefer a clean replace-and-simplify outcome. Partial payouts can be harder to assess.
Is 24 months the standard term?
Many businesses target 24 months or more to reduce pressure. Longer terms can be possible depending on structure and security.
What matters most for approval?
Clarity of liabilities, clean payout plan, bank statement conduct, and a consistent explanation that matches the evidence.
Mini glossary
Dishonour / payment reversal
A direct debit is taken, then credited back because there weren’t sufficient cleared funds.
Payout letter
A document from a lender showing the exact amount required to close a facility, and where to send the payout.
Liabilities schedule
A clear list of existing debts, balances, and repayment amounts.
Serviceability
Whether the business can realistically meet the new repayment based on trading and expenses.
Settlement
When the new lender funds the consolidation and pays out the old debts, often directly using payout details.
Term
How long the new loan runs for (for consolidation, often targeting 24 months or longer).
Security
Property or suitable business assets that can reduce lender risk and support longer terms.
Related resources
If you’re still weighing up what’s realistic, these pages may help:
The ultimate guide to how to get funds even if you have bad credit.
How working capital is structured, and what lenders typically look for.
The full overview: options, eligibility, and how to compare like-for-like.