Business Debt Consolidation Loan Australia - Simplify Your Repayments

If your business is juggling multiple loans, credit cards, and facilities, a debt consolidation loan combines them into one facility with one repayment. This simplifies your admin, can improve cash flow, and may reduce your overall cost of borrowing.

Signs you need debt consolidation

• You have 3+ separate business debts with different repayment dates
• You're using credit cards at 20%+ to manage cash flow
• You're paying credit card surcharges on supplier payments
• You have an old business loan with a high rate that you can't get out of
• You're struggling to track what you owe across multiple facilities
• Your combined repayments are squeezing your working capital

How it works

1. We assess your current debts. List everything: loans, overdrafts, credit cards, ATO debts.
2. We find a consolidation facility. One overdraft or term loan that covers the total.
3. Pay out the existing debts. Use the new facility to clear everything.
4. One repayment going forward. Simpler, often cheaper, and better for cash flow.

Consolidation options

• Business overdraft - pay out existing debts and have a revolving facility for ongoing cash flow. Best if you have ongoing working capital needs.
• Term loan - fixed repayments over a set period. Best if you want to pay down the debt and be done.
• Line of credit - similar to overdraft, flexible access to consolidated funds.

Will I save money?

Not always. If your existing debts are at low secured rates, consolidating into an unsecured facility at a higher rate may cost more. The benefit is simplicity and cash flow, not always rate reduction.

However, if you're paying 20%+ on credit cards plus surcharges, consolidating into an 18% overdraft with zero surcharges and tax-deductible interest almost always saves money. See our credit card vs overdraft comparison.

Related

• Credit card surcharges vs overdraft
• ATO debt vs overdraft
• Overdraft fees explained
• Advantages and disadvantages