Consolidating or replacing an existing facility
Business Loans · UK limited companies
Business Refinance Loans
Business refinance replaces or restructures existing commercial borrowing for a defined objective. A new facility should be compared on total cost, term, security and settlement—not monthly payment alone.
NBS Finance is a broker and introducer, not a lender. An enquiry does not guarantee an offer.
Common uses
When this may be worth discussing
Changing repayment profile
Releasing headroom for a planned commercial purpose
Prepare the enquiry
Information that helps produce a useful answer
Providers set their own rates, charges, fees, security and terms. Clear evidence helps distinguish a viable route from an unsuitable application.
- Current agreements, balances and settlement figures
- Security already granted
- Reason for the change and projected outcome
Important:
Refinancing can extend indebtedness or increase total cost. It does not guarantee savings.
Process
How the enquiry moves forward
Tell us the amount, purpose and timing.
Share the documents relevant to this route.
NBS clarifies the requirement and possible route.
A suitable provider completes its own checks and sets any offer terms.
Compare the refinancing decision in full
| Check | Existing borrowing | Proposed replacement |
|---|---|---|
| Cash movements | Written settlement figures, notice dates and exit charges | Gross facility less settlements and fees: what cash actually reaches the business? |
| Cost over time | Remaining payments and any final balance if the facility continues | All new payments, fees and any final balance across the full new term |
| Repayment pressure | Current payment frequency and seasonal demands | Payments after refinancing, including facilities left in place |
| Security and conditions | Charges, guarantees and release requirements | New security, guarantees, covenants and consent needed from other providers |
A lower monthly payment can reflect a longer term and a higher overall cost. Use written figures for the same decision date and explain whether the aim is lower total cost, improved timing, additional cash or a different security structure. Savings are not guaranteed.
Business loan refinancing questions
Can I consolidate several business loans?
You can ask for the position to be reviewed. Each balance, settlement charge, security interest and repayment obligation must be understood. A provider may decline to refinance a facility or may require consent and releases; combining loans is not guaranteed.
How much new cash would the business receive?
Distinguish the gross new facility from the amount left after existing balances, fees and other completion costs are paid. The written proposal should reconcile these figures; a large headline facility may leave little additional working capital.
Is a lower monthly payment a saving?
Not necessarily. Extending the term may reduce each payment while increasing interest over time. Compare all remaining costs of the existing borrowing with the full cost and conditions of the proposed replacement.
Can I replace unsecured borrowing with a secured loan?
It may be considered, subject to assessment. The change can expose property or other assets to enforcement and introduce valuation and legal costs. Check personal guarantees and take independent legal advice where appropriate.
Can NBS review refinancing above £1 million?
Yes, an appropriate larger requirement can be discussed through lender and specialist partners. The debt schedule, business performance, available security and proposed structure determine whether any route is suitable; no amount or approval is guaranteed.
Further reading and scope
This page is general commercial-finance information, not legal, tax or accounting advice. Read the relevant official guidance at www.british-business-bank.co.uk.
NBS Finance primarily supports UK limited companies. NBS Finance is not incorporated as a limited company and is not authorised or regulated by the Financial Conduct Authority. Where applicable, NBS works with lenders and intermediaries that are FCA-authorised for their own regulated activities; their status does not make NBS Finance FCA-authorised.
Prepare the existing debt schedule
For each loan or facility, list the provider, balance, payment, term, security and guarantee. Request up-to-date settlement figures rather than relying on an online balance. Explain arrears or covenant issues accurately, and do not stop paying an existing agreement while a replacement is being considered.
See large business loans for a substantial refinance proposal and costs and rates for the items to compare.
Tell us the outcome your business needs
Start with the amount, purpose and timing. Best estimates are fine.
Start your funding enquiry