What is business loan refinancing?

Refinancing means replacing or restructuring existing business debt to secure more suitable terms. That might be:

• Switching to a lower interest rate or longer term to reduce monthly repayments.
• Consolidating several facilities (term loans, asset finance, overdrafts) into a single, simpler facility.
• Converting short-term or higher-cost borrowing into a longer-term facility to free up cash flow.
• Releasing equity secured in assets or property to invest in growth.

Refinance is different from taking new lending: it specifically focuses on replacing existing debt rather than adding more borrowing. Fast Business Loans does not lend or advise; we introduce your business to brokers and lenders who assess, quote and (if you agree) complete the refinance.

When refinancing makes sense for UK businesses

Refinancing can be a powerful tool when used for the right reasons. Common scenarios include:

Lower monthly costs

If you can extend a loan term or reduce the interest rate, monthly repayments can fall — easing cash flow and reducing short-term stress.

Debt consolidation

Combining multiple facilities into one can simplify finances and reduce admin. Consolidation may also secure a single, lower blended rate compared with several higher-cost facilities.

Unlocking equity

Refinancing secured facilities can sometimes release capital tied up in plant, vehicles or property to fund investment without taking on additional high-cost debt.

Funding growth on better terms

Replacing expensive short-term finance with a longer-term structured loan can free funds for expansion, equipment or premises.

Warnings: refinancing may incur arrangement fees, valuation/legal costs, or early repayment charges on existing loans. Always compare total costs over the full term, not just monthly payments.

Typical refinance products we can introduce

Through our panel of brokers and lenders we can introduce businesses to a range of refinance options, including:

• Term loan refinancing — replace an existing business loan with a new fixed-term facility, often to reduce rates or extend term.
• Asset refinance — refinance machinery, vehicles or equipment to release equity or lower payments.
• Invoice finance refinancing — move to a different invoice finance provider with better fees or service levels.
• Commercial mortgage refinance — remortgage commercial property to access equity or change lender.
• Debt consolidation loans — combine multiple debts into a single business loan.

Each product has pros and cons depending on your objective. For a deeper guide to refinancing options see our pillar page on refinance loans.

Request tailored lender matches — Free Eligibility Check

How the Fast Business Loans enquiry process works

1. Submit a short enquiry — tell us a few facts about your business, current borrowing and what you want to achieve. This is information-only and does not affect your credit score: Get Quote Now.
2. Eligibility review & matching — we quickly review your details and match you with lenders/brokers who specialise in your sector and needs.
3. Introductions — matched partners contact you to discuss products, perform any necessary checks and provide quotes.
4. Decide & proceed — you choose whether to progress with a lender or broker. Any credit checks and contractual documents are handled by them.

We handle introductions securely and will only share your details with carefully vetted partners who can help. Submitting your enquiry is free and carries no obligation.

Lender criteria & eligibility checklist

Each lender or broker sets their own criteria, but common requirements include:

• Minimum loan / refinance size (we work with transactions from around £10,000 and up).
• Trading history — many lenders prefer at least 12–24 months of trading, though specialist options exist.
• Annual turnover targets — depend on lender and product.
• Business bank statements and management accounts.
• Details of existing debts, security and any personal guarantees.
• Credit profile — both company and director credit histories are considered by lenders.

If you’re unsure whether you meet criteria, our partners often advise on the best route — Start My Refinance Enquiry.

Costs, rates & fees to compare

When comparing refinance offers, look at total cost — not just headline rate. Key items to consider:

• Interest rate — fixed or variable; compare APR when available.
• Arrangement / facility fees — one-off fees charged for setting up the new loan.
• Early repayment charges — penalties for settling existing debt early.
• Valuation, legal & administration fees — common on secured refinancing (property/asset security).
• Ongoing costs — monthly/annual fees or covenants to monitor.

Ask prospective lenders for a breakdown of the total payable over the term, and compare scenarios (e.g. lower monthly payments vs. higher total cost).

Preparing for a successful refinance application

To improve the chances of a smooth refinance:

• Gather the last 12–24 months of business bank statements and management accounts.
• Prepare cash flow forecasts and a clear explanation of why you want to refinance.
• Check and, where possible, improve director/company credit profiles.
• Identify what security (if any) you can offer and be clear on existing charges against assets.
• Be ready to answer questions about customers, suppliers and seasonality.

When you’re ready, complete our short form and we’ll match you to the most relevant partners: Free Eligibility Check.

How we support different sectors

Our lender and broker panel has experience across many UK industries. Common sectors we support include:

• Construction & trades
• Manufacturing & engineering
• Retail & e-commerce
• Hospitality — hotels, restaurants, pubs
• Agriculture & farming
• Healthcare & clinics
• Logistics & transport

Sector-specialist brokers often secure better outcomes because they understand cash flow cycles, asset types and acceptable security for your industry. Check your eligibility in minutes.

Illustrative case study

Illustrative only: A manufacturing SME had three separate asset finance agreements plus an overdraft. Monthly servicing was high and admin intensive. After completing a short enquiry we introduced them to a broker who consolidated the asset finance into one secured term loan at a lower blended rate and refinanced the overdraft into a revolving facility. Result: monthly cashflow improved, one set of payments to manage and released equity for a new production line.

Risks & considerations

Refinancing can help, but be mindful of:

• Higher total interest cost when you extend the loan term.
• Early repayment charges on existing facilities that reduce potential savings.
• The use of security or personal guarantees which increase personal exposure.
• Changes in lender terms or covenants that restrict future flexibility.

Fast Business Loans introduces providers but does not provide financial advice. Consider seeking independent financial or legal advice on significant decisions.

Why businesses choose Fast Business Loans

• Fast matches to vetted lenders and brokers — save time and avoid shopping around.
• Sector-aware introductions — lenders who understand your industry.
• No cost to you — our service is free and no obligation.
• Simple process — one short form and we do the matching.
• Support for transactions from around £10,000 upwards.

Get Quote Now — Free Eligibility Check

Get started

Ready to explore refinance options? Complete our short enquiry and we’ll match your business with lenders or brokers best suited to your needs. It takes less than two minutes and does not affect your credit score: Start Your Free Eligibility Check.

Disclaimer: Fast Business Loans is an introducer, not a lender or financial adviser. Any offers or quotes are provided by the lenders or brokers we introduce and are subject to status, credit approval and terms. Consider independent advice where appropriate.

FAQs

Can I refinance if I’ve missed payments?

Some specialist lenders and brokers will consider applications with past missed payments, depending on the reasons and current trading health. Your matched partner can advise on suitable routes.

Will refinancing affect my credit score?

Your initial enquiry through Fast Business Loans does not affect your credit score. Matched lenders or brokers may carry out credit checks at application stage, which can leave records on the file.

How long does the refinancing process take?

Timescales vary: a straightforward unsecured consolidation can take days to a couple of weeks; secured commercial remortgages or complex restructures can take several weeks. Your broker or lender will outline expected timings after assessing your case.

What documents will lenders ask for?

Typically: business bank statements, recent management accounts, company accounts, details of existing loans and security, and ID for directors. Exact requirements vary by lender and product.

Do you charge businesses for introductions?

No. Our service for businesses is free. Lenders or brokers you choose may charge their own fees; these will be disclosed by them.

What loan sizes do you handle?

We assist with refinance and finance solutions from around £10,000 upwards. For very large or specialist transactions we can introduce experienced commercial brokers.