My Business Has Too Many Loans — What Are My Options?

You're not alone in this

You've got three loans going out every month — maybe four. Different amounts, different dates, different interest rates. You know what each one costs you, but you've stopped working out the total because the number is uncomfortable. You're running a profitable business on paper, but by the time the loan payments come out, there's nothing left to breathe with.

This situation is more common than it looks from the outside. Most business owners dealing with it feel like they made a mistake — like they should have seen this coming. But the reality is usually messier than that. The loans made sense when they were taken out. The problem is accumulation.

This guide explains what your options are. Honestly — including the ones that might not work for you. If you need more support than a broker can offer, we've included the Business Debtline number at the bottom.

How did this happen?

Most businesses that end up with multiple loans didn't make bad decisions. They needed money at different times for different reasons. The pattern usually looks something like this:

• A Bounce Back Loan in 2020 to get through the pandemic
• An equipment finance agreement in 2021 when things picked up
• A business loan in 2023 to cover a cash flow gap during a difficult quarter
• A merchant cash advance (MCA) when a quick injection was needed and the bank said no

Each decision made sense at the time. The problem is that loans don't disappear — they accumulate. And as interest rates rose, the cost of servicing older debt went up too. You end up with multiple payments, multiple lenders, multiple interest rates, and the constant mental load of managing all of it.

Your four options

Let's be direct about what you can actually do.

Option 1: Consolidation loan

One new loan that pays off all your existing ones. You're left with a single monthly payment, a single lender, and (usually) a lower combined monthly cost. This is what most of this guide focuses on. It works well if the business is viable but the debt structure is inefficient.

Option 2: Refinancing

Replacing expensive individual loans with cheaper alternatives — without necessarily combining everything. If you have a merchant cash advance at an effective 80% APR alongside a term loan at 10%, refinancing the MCA alone could save significant money even if you keep the other loans separate. See our guide to exiting a merchant cash advance.

Option 3: Speak to your lenders directly

Lenders would generally rather restructure a loan than deal with a default. If you're struggling, it's worth calling each lender and asking whether they can extend your term, reduce your monthly payment, or grant a payment holiday. Not all will — but some will, especially if you have a clean repayment history with them.

Option 4: Speak to an insolvency practitioner

If the debt is genuinely unmanageable — not just inefficient but beyond what the business can service at any interest rate — consolidation won't solve the underlying problem. In that situation, you need debt advice, not a new loan. Business Debtline offers free, confidential advice to UK businesses. Call them on 0800 197 6026 (Mon–Fri 9am–8pm).

The rest of this guide focuses on options 1 and 2 — for businesses that are viable but over-leveraged, not businesses facing insolvency.

What is business debt consolidation?

Business debt consolidation means taking out one new loan that pays off all your existing ones. Instead of multiple payments going out to multiple lenders every month, you have one direct debit, one set of terms, and one lender to deal with.

The goal is usually to reduce your monthly cash outflow — either because the consolidated loan has a lower interest rate than some of your existing debt, or because you're spreading the payments over a longer term. Sometimes both.

Is consolidation right for you?

Be honest with yourself on these. Consolidation works well if most of these are true:

Good fit for consolidation

• The business is trading profitably (or breaking even)
• Multiple loans are creating payment admin and cash flow pressure
• At least some of your current debt is expensive (MCA, high-rate unsecured loans)
• You can service a single consolidated loan at a lower monthly cost
• You've been trading for 12+ months with consistent turnover

Not the right fit

• The business is fundamentally struggling — revenue falling, customers leaving
• Total debt is so large it's unmanageable even at lower rates
• You're already behind on payments or have County Court Judgements (CCJs) being enforced
• The goal is to buy more time rather than genuinely solve the problem

Consolidation is not a rescue — it's a restructure. If the business itself is in trouble, speak to Business Debtline or an insolvency practitioner. If the business is sound but the debt structure is inefficient, a consolidation loan can make a real difference.

Next steps

1. Not sure consolidation is right? Answer 5 quick questions in our decision tool to get an honest assessment before you go further. Should I Consolidate? →
2. Use our calculator to see what a consolidation loan might cost for your total debt. Business Debt Consolidation Calculator →
3. Read the full guide if you want to understand the costs and secured vs unsecured options in more detail. What Is Business Debt Consolidation?
4. Talk to a broker using the form below. A specialist broker can soft-search multiple lenders (no credit impact) and tell you what's realistically available for your profile before you apply for anything.

Frequently asked questions