Business Debt Consolidation Loans Australia 2026
Replace multiple repayments with one structured facility. Secured from 7.49% p.a., unsecured from 12.85% p.a. Compare 40+ Australian lenders.
TL;DR — Business Debt Consolidation
- Roll multiple existing facilities — credit cards, MCAs, overdrafts, short-term loans — into a single loan with one repayment schedule.
- Secured consolidation loans start from 7.49% p.a.; unsecured from 12.85% p.a. (May 2026).
- Done right: lower blended rate, reduced monthly repayments, simpler admin, and a firm end date on your debt.
- The discipline: make sure the new structure is genuinely better — not just easier to look at.
- Always close the facilities you consolidate, not just the balances.
Business Debt Consolidation Loans — One Repayment, Less Noise, Better Cash Flow
Managing four repayments across two lenders, a credit card, and an MCA isn't a business strategy — it's financial whack-a-mole. A business debt consolidation loan replaces that chaos with one structured facility, one repayment, and a clear path to debt-free. LoanGorilla compares debt consolidation options from 40+ lenders to find a structure that genuinely improves your position — not just rearranges it.
Check your debt consolidation options with LoanGorilla — free comparison, no credit score impact, takes 2 minutes.
Compare NowRate snapshot (May 2026): Secured consolidation loans from 7.49% p.a. Unsecured consolidation facilities from 12.85% p.a. Your blended saving depends on what you're consolidating from — MCA factor rates and short-term loan APRs are often 25–60%+ p.a.
Consolidation Structures at a Glance
| Structure | Rate from | Amounts | Term |
|---|---|---|---|
| Secured consolidation (property) | 7.49% p.a. | $10,000 – $5M+ | 1 – 15 years |
| Unsecured consolidation | 12.85% p.a. | $5,000 – $500,000 | 3 months – 5 years |
| Consolidating from MCA / short-term | Potential saving 15–50%+ p.a. | Varies | Varies |
Indicative rates as of May 2026. Rates vary by lender and borrower profile.
What Is a Business Debt Consolidation Loan?
A business debt consolidation loan replaces multiple existing credit facilities with a single new loan. The consolidation lender pays out your old debts, and you repay them — on one set of terms, with one fee structure, and one regular repayment.
The goal isn't "new debt for old" for its own sake. Done well, consolidation improves at least one of: your interest cost, your monthly cash flow, your admin load, your visibility on the debt position, or your timeline to debt-free. LoanGorilla's role is to model the before-and-after of your specific debt stack — not just assume consolidation is automatically the right move.
What Types of Business Debt Can Be Consolidated?
Most facilities draining cash flow are candidates for consolidation:
Business credit cards
Often 18–25% p.a. with revolving balances that never seem to shrink.
Merchant cash advances
Factor rates of 1.1–1.5x translate to effective APRs of 20–60%+.
Short-term business loans
3–12 month products often priced at 25–40%+ p.a. effective.
Business overdrafts
Unsecured overdraft rates from 15.24% p.a. can be reduced via consolidation.
ATO and tax debt
ATO general interest charge is 10.65% p.a. and no longer tax-deductible from 1 July 2025.
Multiple term loans / lines of credit
Simplify a cluttered facility structure into one clean repayment.
How Business Debt Consolidation Actually Works
List every existing debt
Balance, rate (or factor rate), repayment amount, remaining term, and any payout fees.
Model the before-and-after
LoanGorilla compares your current total repayment burden against what a consolidated facility would look like at available rates.
Source a consolidation facility
Either unsecured or secured, depending on your profile and assets available.
New lender pays out the old facilities
Funds go directly to each existing lender, closing those accounts.
Repay the new consolidated loan
Single repayment, one lender, one end date.
The difference between a good consolidation and a bad one is step 2 — the modelling. Extending your debt over 5 years at a lower rate might reduce your monthly cash drain but increase total interest paid. Sometimes that's the right call; sometimes it isn't. LoanGorilla helps you make that decision with numbers in front of you.
Secured vs Unsecured Consolidation
Secured Consolidation (Property-Backed)
If you own commercial property, residential property, or other high-value assets with available equity, securing your consolidation loan against these can unlock rates from 7.49% p.a. — making even large, complex debt stacks affordable to restructure. The trade-off: the asset is at risk if the consolidated loan isn't serviced. LoanGorilla strongly recommends using investment or commercial property before owner-occupied residential.
See secured term loans →Unsecured Consolidation
If no property is available, unsecured consolidation facilities are accessible from 12.85% p.a. — still significantly lower than MCAs, credit cards, and high-rate short-term loans. Borrowing limits are lower and terms are shorter, but for debt stacks under $300,000–$500,000, unsecured consolidation is often the simpler and faster path.
Is Consolidation Actually Worth It? The Honest Maths
Before recommending consolidation, LoanGorilla runs the real comparison. Here's the kind of analysis that separates a good decision from an expensive mistake.
Example: business with three existing facilities
| Facility | Balance | Rate | Monthly |
|---|---|---|---|
| MCA | $80,000 | ~40% p.a. equiv. | $4,200 |
| Credit card | $35,000 | 20% p.a. | $1,400 |
| Short-term loan | $60,000 | 28% p.a. | $3,100 |
| Total | $175,000 | ~32% blended | $8,700/mo |
Consolidated (unsecured @ 15% p.a., 4-year term): Monthly repayment ~$4,860 · Total interest over term ~$58,300 · Monthly cash flow saving ~$3,840.
Illustrative example. The monthly saving is real, but you may pay more or less total interest depending on how far through your existing facilities you are. That's the analysis worth doing.
When Debt Consolidation Makes Sense — and When It Doesn't
Likely the right move
- You're managing 3+ separate repayment obligations with varying due dates
- One or more facilities carries a rate above 20% p.a. (cards, MCAs, high-rate short-term loans)
- Your credit profile has improved — you now qualify for better rates
- Monthly repayments are straining cash flow to the point of affecting operations
- You want a clear, defined end date on your debt
Probably not the right move
- Existing rates are already competitive — admin efficiency alone rarely justifies fees
- You're close to paying off most of your existing debt — extending the term costs more
- Cash flow problems stem from structural issues (margins, pricing, customers)
- You can't genuinely afford the consolidated repayment either
What to Compare on Consolidation Loans
True blended rate improvement
Compare your current weighted average interest rate against the consolidation rate, factoring in all fees.
Payout costs on existing facilities
MCAs and some fixed-rate loans carry substantial exit fees. Get payout figures (not just balances) before modelling.
Establishment fees
Typically 0–3% of the consolidated loan amount. Roll-in vs upfront affects effective rate.
Term length and total interest
Run a full-term total cost comparison, not just the monthly repayment.
Security requirements
Which assets (if any) are required to achieve the rate quoted.
Refinancing restrictions
Can you exit the consolidation loan early without penalty if your position improves?
LoanGorilla compares business debt consolidation options from 40+ lenders across all of these dimensions — not just the headline rate.
Potential Drawbacks
Extending the term extends the interest cost
Even at a lower rate, spreading your debt over 5 years instead of 2 often means paying more total interest. Fine if monthly cash flow relief is the priority — but go in with eyes open.
Consolidation can mask a re-loading risk
The most common mistake post-consolidation: paying off credit cards and overdrafts as part of the consolidation — then reloading them within 12 months. Close the facilities you're consolidating, not just the balances.
Exit fees on existing facilities can erode the saving
MCA providers often charge substantial penalties for early payout. Short-term lenders may do the same. Always get formal payout figures before committing — the saving may be smaller than the rate comparison suggests.
Eligibility Snapshot
Most consolidation loan lenders in Australia want an active ABN, 6–12 months of trading history, evidence of the existing debts being consolidated, and a demonstrable ability to service the new consolidated facility. Lenders will review your full debt picture — not just the balance you're consolidating, but your total liabilities.
Ready to Run the Numbers?
Free comparison. No credit score impact. Takes 2 minutes.
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Rates shown are subject to change. WARNING: Comparison rates are true only for the example given and may not include all fees and charges. Always read the lender's terms before applying.