Can I combine secured and unsecured facilities into one loan?

Possibly, but a new lender must accept the mix of security. Secured facilities often require asset valuations and formal discharge before transfer, or the new lender may require replacement security.

Will consolidating reduce my monthly payments?

Consolidation can lower monthly payments by extending terms or combining debts at a better rate, but you should balance term length against total interest paid and any one-off consolidation costs.

How long does a consolidation refinance take?

Typical timelines vary from a few weeks for simple unsecured consolidations to several months for deals requiring valuations, solicitor work and complex security rearrangements.

Can I refinance multiple facilities from different lenders into one agreement?

Short answer — yes, usually, but it depends on the facilities, security and lender consent

Yes — businesses can often refinance multiple facilities from different lenders into a single agreement, but it is not automatic or guaranteed.

Successful consolidation depends on the types of facilities, whether they are secured, each lender’s payoff terms, and the appetite of a new lender to accept the combined risk and security package.

When consolidation is typically possible

Types of facilities lenders will commonly consolidate

Lenders and brokers commonly consolidate business overdrafts, term loans, asset finance agreements, invoice finance and unsecured working capital facilities.

Facilities secured on specific assets (for example asset finance or hire purchase) can often be bundled if a proposed lender will accept the security or if assets can be recharged under one new facility.

Where consolidation is harder or not possible

Some facilities are difficult to combine, including regulated consumer credit, certain commercial mortgages and agreements with onerous cross-default or early repayment penalties.

Facility-specific covenants, third-party charges, or personal guarantees can also prevent a straightforward single-agreement refinance without complex restructuring.

Lender consent and contractual restrictions

Most existing lenders will need final settlement statements and may require notice before a payout or refinancing occurs.

Some agreements include break costs, settlement figures that vary with time, or clauses preventing early repayment without consent or compensation.

Key factors a new lender will assess

Security and ranking of charges

A new lender will want clarity on what assets secure the proposed consolidated facility and the ranking of charges against those assets.

If multiple lenders already hold different security interests, those will need to be discharged, subordinated or restructured — often requiring solicitors and formal deeds.

Borrower credit, covenants and cashflow

Underwriting focuses on trading performance, projected cashflow and covenant history to ensure the consolidated facility is affordable.

Weak cashflow or multiple historical covenant breaches make consolidation more difficult and may require higher pricing or additional security.

Costs, break fees and tax considerations

Refinancing can attract early repayment charges, arrangement fees, legal costs, valuation fees and potential tax considerations for capital allowances or asset transfers.

These costs should be quantified when assessing whether consolidation delivers a net benefit to the business.

How the refinance process typically works (step-by-step)

Step 1: Gather documentation

Collect loan agreements, recent statements, settlement figures, security documents and management accounts.

Step 2: Initial assessment and quick quote

Platforms and brokers review the package to check if a consolidation lender or broker can offer terms and structure.

Best Business Loans can help match your enquiry to lenders or brokers who specialise in consolidation; start by submitting a Quick Quote.

Step 3: Indicative offers and due diligence

Selected lenders will provide indicative terms and then conduct detailed due diligence including valuations, legal searches and credit checks.

This stage determines whether all existing debts can be repaid and the final pricing for the new single agreement.

Step 4: Legal work and settlement

Solicitors prepare deeds of discharge, new security documents and settlement instructions for each existing lender.

Once legal conditions are satisfied the new lender funds settlement and the old facilities are closed or subordinated as agreed.

Step 5: Ongoing monitoring

The new consolidated facility will usually include covenants, reporting requirements and a defined repayment profile that you must meet.

Maintain clear communication with your new lender to avoid breaches and to consider future refinancing if circumstances change.

Benefits and drawbacks of consolidating into one agreement

Main benefits

Single monthly repayment and one point of contact simplifies cashflow management.
Possibility of improved pricing or extended terms that reduce short-term pressure on working capital.
Opportunity to rationalise and optimise security arrangements and remove cross-default complexity.

Main drawbacks

Early repayment charges and legal costs can erode expected savings from consolidation.
One larger facility may carry more onerous covenants or personal guarantees than separate smaller facilities.
Some lenders may refuse to consolidate specific regulated or bespoke facilities, requiring hybrid solutions instead.

When consolidation is a good option

Consolidation usually makes sense if it reduces total costs, improves cashflow and simplifies administration without increasing overall risk to the business owners.

It is less attractive when the combined cost or loss of flexibility outweighs the administrative benefits.

Next steps and how Best Business Loans can assist

Practical next steps for business owners

Start by requesting up-to-date settlement figures and listing all facilities, securities and guarantors.

Prepare three to six months of management accounts, a cashflow forecast and details of any active disputes or covenant breaches.

How our platform helps

Best Business Loans doesn’t lend directly; we use AI-driven matching to introduce you to lenders and brokers experienced in consolidation.

We can identify providers who are actively lending to businesses like yours and support an eligibility check or Decision in Principle quickly.

Compliance and clarity

We aim to provide information that is fair, clear and not misleading and to make sure you have the facts to decide whether consolidation is right for your business.

We are not regulated by the FCA for lending, and we will always make clear which lenders or brokers we introduce are authorised where applicable.

Ready to explore your options?

If you’d like an initial assessment, complete our Quick Quote for a fast eligibility check and tailored introductions.

Visit our refinance guide to learn more: Refinance options and how to consolidate, or submit your Quick Quote to get started.

Key takeaways

Consolidating multiple facilities into one agreement is often possible but depends on security, lender consent and costs.
Carefully quantify early repayment charges, legal fees and covenant impacts before proceeding.
Use specialist brokers or platforms to find lenders willing to accept combined security and to manage legal settlement.
Best Business Loans can match your business with suitable lenders or brokers to assess consolidation options quickly and without obligation.

Disclosure: Best Business Loans acts as an introducer and matcher of finance options and does not provide credit or accept deposits. Any connections we make are to regulated or specialist lenders and brokers as appropriate, and you should seek professional legal and financial advice before agreeing to any refinance.