Quick answer
Business debt refinancing in Australia is done by banks for well-documented businesses, by non-bank lenders for businesses outside bank policy, and by private lenders as a short-term bridge. Owners refinance to consolidate several short-term debts, reduce repayments, move off an expensive facility, release equity or change lenders. The new lender assesses the whole business afresh, and switching costs must be weighed against the savings.
Key points
- Common goals: consolidate stacked short-term loans, lower repayments, release equity.
- The new lender reassesses everything — security, credit, financials.
- Count exit fees, break costs and new establishment costs before switching.
- Property security usually unlocks the best consolidation options.
- Main lenders
- Banks, non-banks
- Bridge
- Private lenders
- Check first
- Exit and switching costs
Business debt tends to accumulate in layers: an equipment loan here, an online loan for a quiet month there, a line of credit, a tax payment plan. Each made sense when it was taken out. Together they can leave a business making a dozen repayments a week to half a dozen lenders. Refinancing is the process of stepping back and rebuilding that structure deliberately.
Why do businesses refinance?
- Consolidation. Replace several short-term, high-frequency facilities with one longer loan.
- Lower repayments. Extend the term so the regular repayment fits cash flow.
- Lower cost. The business now qualifies for a cheaper lender type than when it first borrowed.
- Release equity. Draw on property value for a new purpose.
- Better fit. Move to a lender whose policy suits the business as it is today.
- Lender exit. The current lender wants out, or a facility is expiring.
The RBA’s October 2025 Bulletin observed that access to finance for small businesses has improved, with more competitive pricing and expanded product ranges. That’s the kind of market where reviewing an older structure can pay off.
Which lenders take on refinances?
| Lender type | When it fits |
|---|---|
| Major and regional banks | Clean, well-documented businesses wanting the lowest long-term cost |
| Non-bank lenders | Businesses outside bank policy, consolidating with property security |
| Private lenders | Short-term bridge while a longer refinance is arranged |
| Asset financiers | Refinancing equipment to release cash or lower repayments |
Does refinancing actually save money?
Only if the numbers say so. List every existing facility with its balance, remaining term, repayment and exit cost. Then compare the total you’d pay if you left everything alone with the total under the new loan, including establishment, valuation and legal costs. Our repayment comfort calculator helps you work with each lender’s quoted totals rather than headline rates.
Consolidation can also cost more in total while still being the right call — if lower, monthly repayments stop the business from defaulting, that’s worth paying for. Just make that choice with eyes open.
Want a second opinion on whether your current debts are worth restructuring? Ask a specialist — it doesn’t involve a credit check.
What will the new lender look at?
Everything, from scratch: financials or alternative income evidence, credit history, ATO position, existing security and payout figures, bank statements showing current repayments, and the reason for the refinance. Lenders are cautious about consolidations that simply clear room for more borrowing, so be ready to explain how the new structure fixes the problem rather than resets it.
Why are refinance applications declined?
- Not enough equity to cover all the debts being consolidated.
- Bank statements showing repeated missed or dishonoured repayments.
- A pattern of short-term borrowing with no clear change in circumstances.
- Unmanaged ATO debt alongside the other debts.
- Switching costs that outweigh the benefit.
How do you approach a refinance?
Get payout figures for every facility. Lodge any outstanding BAS or returns. Write a short summary of why the debts built up and what’s different now. Choose the lender type that fits the business you are today, and apply once, properly — scattering applications leaves credit enquiries that can follow you for years.
An illustrative example
Purely illustrative, with no real business: a plumbing business took out three online loans over eighteen months to cover a slow patch, a van repair and a large tax bill. It now has daily, weekly and fortnightly debits from three lenders, and they consume most of its spare cash. The owners have equity in their home. A non-bank lender consolidates all three facilities into one property-secured loan with monthly repayments over a longer term. The total cost is compared in dollars with leaving the loans to run, and the owners accept a slightly higher total in exchange for monthly repayments that fit their invoicing cycle and remove the risk of missed debits.
What should you gather before you start?
- Payout figures for every facility, including exit costs.
- The last six to twelve months of bank statements showing current repayments.
- Lodged BAS and returns, or a timeline for any that are outstanding.
- An ATO statement of account.
- Property details if security will be offered.
- A one-paragraph explanation of how the debts built up and why the new structure fixes it.
Which questions should you ask the new lender?
- Will you pay the old lenders out directly at settlement?
- What happens to any general security interests the old lenders registered?
- Is there a redraw, so I don’t need another short-term loan next time?
Quick checklist before you refinance
- A list of every facility, its balance, repayment and exit cost.
- The total cost of staying put versus switching, in dollars.
- Lodgements and ATO position up to date.
Finally, give yourself a review date. Once the new structure is in place and the business has six to twelve months of clean repayments, check whether a cheaper lender type has opened up. Refinancing is a step on a path, not a one-off event.
Ready to rebuild your debt structure?
If repayments are tangled or the business has outgrown its first lenders, a refinance may simplify things. Send a 60-second enquiry listing what you owe and to whom, and a lending specialist will tell you which lender type could consolidate it and whether the numbers stack up. No credit check to ask, your details aren’t offered around the market, and accurate answers about your current debts are what let us get this right first time.
Frequently asked questions
When should a business refinance its debt?
When the current structure no longer fits: repayments are straining cash flow, several short-term facilities are stacking up, the business now qualifies for a cheaper lender, or it needs to release equity for a new purpose.
Can I consolidate several online loans into one?
Often, particularly if you have property security. Lenders will look closely at why the loans were taken out and whether the business can sustain the consolidated repayment.
Will refinancing hurt my credit?
Applying for new credit can leave an enquiry on your file, and the OAIC says enquiries stay there for five years. One well-targeted application is better than several speculative ones.
What costs are involved in refinancing?
Exit or early repayment costs on the old loans, plus establishment, valuation and legal costs on the new one. Compare the total in dollars with what you'll save.
Can I refinance away from a non-bank back to a bank?
Yes, and many owners plan it. Once tax returns are lodged, tax debt is cleared or the business has more history, a bank refinance can be the natural next step.