Business loans > debt consolidation
Business debt consolidation loans in Australia
Say goodbye to stressful repayments. Combine your loans into one, with a longer term, and more manageable repayments.
Loan terms up to 5 years
Close off multiple loans
Specialist business loan brokers
100% free · No credit score impact · No obligation
Lenders’ Choice Broker of the Year finalist
Optimise Awards 2025
Our Panel of 40+ Lenders
Most clients that want to consolidate their debts tell us the same thing.
They took out the loans because they needed funds for something urgent.
But over time, realised the repayments are simply too hard to manage and need a break.
If that’s where you’re at, you’re not alone
The most important thing to remember is that for most lenders, once you have 2 or more dishonours, most applications result in a decline.
The biggest piece of advice for every small business owner is not to wait until the very last minute to consolidate your debts.
If you would like to see what your options are, visit our get a quick answer form, and we’ll show you available options from a business loan broker.
Who this is for / not for
Who this page is for
Businesses trading longer than 1 year
You have 2 or more business loans, or
You have high-cost loan repayments
You want a longer term loan
You want lower repayments
You want the flexibility to pay it out early if you can
Who it’s not for
Anyone looking to take out another loan but not payout the existing loans.
Anyone planning multiple applications with multiple lenders (some lenders do not debt consolidate)
Why I built this guide
I built this guide so you can see that:
When you apply, how you structure the loan, and how you present the loan, are all key elements in a successful loan application.
Most business owners learn their options after they’ve taken the wrong type of loan.
This page is designed to help you understand what lenders want to see, so you can apply in confidence.
Quick answers
What is a business debt consolidation loan? It’s a loan that allows you to pay out multiple other business loans. Not all lenders pay out existing business loans.
Is it harder to get approved than a normal loan? Absolutely, yes. This is because the new lender is taking on the combined risk. They want to know the how you got there, and how you plan to pay the new loan out over time.
Best time to restructure? As soon as possible. It must be done well before you feel the pinch. We’ve seen too many business owners wait until it’s too late. As soon as you start seeing your balance drop, it’s time to consolidate for a longer term.
Second-best time? Before the very first dishonour / payment reversal. As soon as the bank balance has gone into negative territory, it’s time to reduce loan repayments to improve cash flow.
What changes after a dishonour? Most lenders will decline upfront, and those remaining will scrutinise the application as dishonours signal financial hardship. One single dishonour, will require a strong presentation to the lender.
Can terms be 48–60 months? Can be possible depending on the structure and security (longer terms may require property security).
What matters most? Bank statement conduct, an explainable credit report, a clean payout plan, and a restructure story that matches the information available.
What debts can be consolidated? Short-term business loans, factor rate loans, merchant cash advances, manageable ATO debts, and more. Want to know your options? Get a quick answer today.
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 depend on your specific scenario, assessment queues, and payout letters.
At a glance
This page is for businesses that:
have multiple debts
have frequent repayments
feel repayments are driving the week
want one longer-term structure
Want to know how to apply for a loan that allows for debt consolidation
The situation page is for
It starts with something normal: a slow month, a late-paying customer, a tax bill, a larger stock purchase, a gap between invoices and wages.
You get a loan funded quickly.
Then the repayments kick in.
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 running the business but feel like you’re going in circles
you’re thinking about repayments more than customers
you’re losing confidence, not because you can’t run your business — but because your cash flow is too tight
What a business debt consolidation loan is
A business debt consolidation loan is a loan that allows to pay out multiple other business loans.
The purpose is to:
reduce pressure
simplify commitments
Setup a structure you can manage
restore predictability
In many cases, lenders treat consolidations as a restructure decision.
They’re asking:
“Does this improve their position?”
“Does this lower repayments meaningfully?”
“Is the payout the right decision?”
Why consolidation is hard to get approved
Consolidation can be harder because the lender 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.
The timing trap: why acting early matters
This is one of the most common scenarios we see.
Most small business owners are too busy to be aware until they’re already inside it.
So if the repayments are too frequent, and the term is too short, you may need to act earlier.
The best time to restructure is early
If you’ve taken a facility and you already feel:
the repayment is too frequent
the term is too show
my week is driven by my loan repayments
…the best time to explore consolidation is as soon as you notice it.
Because while the business is still meeting repayments cleanly, is usually the best and only time options remain realistic.
The second-best time is before the first dishonour (payment reversal)
A payment reversal is when the repayment comes out and then credited back because there weren’t enough funds in the account.
All lenders treat dishonours as a high-risk signal because it is the first sign the business under real strain.
The first dishonour doesn’t mean no options, but at this point, most lenders will decline upfront.
Seen in practice #2 (what changes after a dishonour)
A business owner was coping until the first repayment reversal. From then on, the conversation shifted from “can we restructure?” to “how can we explain our situation?”
Exploring restructure earlier keeps the story simpler and the assessment more straightforward.
What lenders are really deciding
A lender that consolidates debts is trying to figure out:
They’re helping reduce risk
That the new structure meaningfully reduces your chances of default.Your story matches the statements
The “why” behind the debts makes sense when they check your bank statements.Payout is clean
One facility replaces many, with balances and payouts clearly evidenced.Improved cash flow
The new repayment greatly improves your 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 assessing your bank statements and the current repayments, then working backwards to find a lender that will actually be able to support you.
If a restructure is not realistic right now, I’ll tell you early so you don’t waste time.
Want to know your options?
100% free · No credit score impact · No obligation
Before vs after (and the trade-offs)
Before
multiple repayments hitting
decisions become reactive
business feels like it’s running on the edge
After
one repayment
a longer loan term to free up cash flow
easier to manage
predictability returns
Trade-offs (worth understanding)
longer terms mean more interest
not every debt can be rolled into one
consolidation works best with a plan
find lenders with no early payout
What lenders look at first
For consolidation, lenders commonly start with:
business bank statements
summary of debts and total repayments
how repayments have been managed
clarity on what gets paid out and why
does the explanation match the history
One important point: lenders want to know if the debt consolidation will help put you in a better position without putting them at high risk.
How to present it properly
A consolidation request is strongest when the strategy is communicated well.
1) Map out out debts
List your:
facilities
current balances
repayment amounts and frequency
remaining terms
total monthly repayments
2) Payout plan
A plan showing:
which debts are to be paid out
payout figures
details showing how the new loan compares
3) Your situation
A short 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 applying for another loan after consolidation
4) Supporting evidence
This usually includes:
business bank statements
assets & liabilities statements
a short written summary that matches the timeline
Need help presenting your situation?
How longer terms are usually achieved
Longer terms are more realistic the stronger the business. For many lenders, security helps.
Without property security
trading consistency
strong average cash balance
liabilities up to date
genuine short-term funding need
typical term 18-36 months
some lenders have products that only require property ownership, not used as direct security
With property security
some lenders offer 4-5 year terms
reduces the lenders perceived risk
security means lenders can cover their losses
some lenders can go up to 100% LVR
Raise equity against vehicles and equipment
In many cases, you can release equity from business assets including vehicles and equipment
longer terms up to 60 months
greatly reduced repayment pressure
lower rates than typical business loans
This is a pathway most business owners aren’t aware of. Rates are typically lower than business loan rates, sometimes by a good margin.
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 a clear strategy
stacking another loan
asking for “consolidation” but keeping the original debts open
Moving forward with a wrong loan product
applying simultaneously with multiple lenders
disorganised presentation increasing the effort and time it takes to assess
FAQs
Can I consolidate multiple short-term business debts into one loan?
Yes, there are some lenders that proactively promote this.
Do lenders require debts to be paid out in full?
Most lenders will require the debts to be paid on in full.
Is 24 months the standard term?
Many businesses target 24 months or more to reduce pressure. Longer terms can be possible depending on the application strength.
What matters most for approval?
A complete application of how the debt consolidation is going to improve the business. List of liabilities, clean payout plan, good 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.
Want a Quick Answer
See what you may qualify for in 30 seconds, with no obligation and no credit score impact.
100% free · No credit score impact · No obligation
What business owners say
★★★★★
“Casey Asset Finance saved my business when I needed support.”
Maral · Business owner
★★★★★
“Went above and beyond to secure me the best deal.”
Carmel · Business owner
★★★★★
“Efficient, professional, and incredibly knowledgeable.”
Daniel · Business owner