Debt Consolidation
Most debts impacting your business cash flow can be consolidated. This often includes ATO tax debt, lines of credit, overdrafts, asset finance, merchant cash advances, invoice finance, and business credit cards.
In a nutshell, if it’s creating repayment pressure, there’s a good chance it can be rolled into one more manageable facility.
Most Australian businesses can apply for a debt consolidation loan, including sole traders, partnerships, and companies. Trusts can also apply, but there’s usually a catch: lenders typically prefer a corporate trustee rather than an individual one.
Yes, but it can be harder if you're a younger business. Going for an alternative lender is usually the smartest move, as they typically offer more flexibility.
Consolidating debt into a single, lower-interest repayment can make cash flow easier to manage. One predictable repayment instead of several scattered ones can reduce admin and give you clearer visibility over your monthly outgoings.
Keep in mind that total interest paid may be higher if the loan term is longer, since spreading repayments over more months or years increases the overall cost.
Consolidation is a trade-off: short-term cash flow relief vs long-term cost. The key is picking a repayment term that balances both.
A consolidation loan might make sense for your business if:
- You're juggling several high-interest loans or credit cards
- Your business credit score has improved, so you may be eligible for better rates
- Your current repayment schedule is straining your cash flow
- You want simpler bookkeeping and fewer moving parts
At Valiant, our brokers weigh it up properly, and if consolidation is or isn’t the right fit.
If you miss make repayments, many lenders charge late fees and interest penalties. Your business credit score could take a hit, and if your loan is secured, assets may be at risk.
The key is to act quickly. Contact your lender before you miss a payment to see if they can restructure your repayments. Review your cash flow as well, to determine whether this is a one-off hiccup or a deeper issue that needs addressing.
