How to consolidate business debt in Ireland: a step-by-step guide

Refinancing tends to work when the business is trading soundly and the existing borrowing no longer fits. Common reasons include:

• Expensive short-term debt, such as several stacked short-term loans or merchant cash advancesA form of finance where a provider advances a lump sum in return for a fixed percentage of the company's future card takings until an agreed total is repaid., that the company has outgrown.
• Repayments bunched into the same months, causing regular cash squeezes.
• A facility close to maturity, such as a term loan with a balloon paymentA larger final payment due at the end of a hire purchase or loan agreement, which reduces the regular monthly instalments..
• Lower-cost borrowing becoming available because the company's profits, track record or security position have improved.
• A wish to release or reduce security or personal guarantees given in the past.

Refinancing and consolidation are not the same decision. You might refinance a single loan to get a better rate or a longer term, while keeping everything else as it is. Consolidation goes further: when you consolidate business loans, you replace several facilities with one, which simplifies your cash flow but puts all your borrowing with one lender on one set of terms.

It tends not to work when the company is loss-making with no plan to fix it. New borrowing will not solve a business that does not earn enough to repay its debts. In that case, the section below on financial difficulty is more relevant.

1. Build a debt schedule. For every facility, record the lender, balance, interest rate or factor rateA pricing method used mainly for merchant cash advances and some short-term finance, expressed as a multiplier such as 1.2 rather than an interest rate., monthly repayment, months remaining, early repayment or exit charges, security taken and any personal guarantees.
2. Ask each existing lender for a written redemption figure valid to a set date, including any break costs.
3. Work out the cost of doing nothing: the total of all remaining repayments under the current facilities.
4. Work out the cost of the new option: total repayments on the new facility, plus arrangement fees, legal costs and the early repayment chargesA fee some lenders charge if a loan or finance agreement is repaid before the end of its term, to compensate for interest they will no longer receive. on the old debts.
5. Check affordability using your debt service coverage ratioA measure of whether a company earns enough to meet its loan repayments. with the DSCR calculator. Lenders will do the same.
6. Read the security and guarantee terms of the new offer. Make sure the old security and guarantees will be formally released when the old debts are repaid.
7. Once the new facility is drawn, confirm each old loan is closed in writing and check that it shows as settled on your company's Central Credit Register report.

The most common mistake is to compare only monthly repayments. Spreading the same debt over a longer term almost always reduces the monthly figure and almost always increases the total cost.

Illustrative example

A refinance is assessed like any new loan, with extra attention on why you are refinancing. Expect a lender to ask for:

• Recent filed accounts and up-to-date management accountsInternal financial reports, usually monthly or quarterly, showing a company's recent trading, balance sheet and cash position..
• Business bank statements, typically for the last several months.
• Statements for each facility being refinanced, and the redemption figures.
• Evidence of Revenue compliance, often a tax clearance certificateConfirmation from Revenue that a company's tax affairs are in order.. See our guide on tax clearance for companies.
• A short explanation of why the existing debt was taken on and how the new structure helps.
• Details of directors and any guarantees, and identification for KYC checks.

Questions to ask any new lender

• Is the rate fixed or variable, and what is the total amount repayableThe full sum a company will pay over the life of a loan or finance agreement, including the amount borrowed, interest and all fees.?
• What fees apply at the start, during the term and on early repayment?
• What security or personal guarantee is required?
• How quickly will the old facilities be repaid once the loan is drawn?
• Does the lender report to the Central Credit Register?

Many lenders ask why the existing lender is not refinancing the debt itself. If your bank has declined a request, our guide to what to do when a bank refuses a business loan explains your options.

It leaves a trace but does not create a score. The new lender’s search leaves a footprint, and the old loans stay visible as repaid for five years, so apply selectively and check the old loans are marked as closed.

The Central Credit Register (CCR), run by the Central Bank under the Credit Reporting Act 2013, does not give a credit score, but lenders rely heavily on it. Three points matter when refinancing:

• Lenders can access your company's report when it applies for a new loan or applies to restructure an existing one. Each access leaves an enquiry record, called a footprint, which shows on the report for five years. Lenders see footprints from the last two years.
• Loan applications of €2,000 or more are recorded and held for six months. Several applications in a short period can make a company look under pressure, so do your homework first and apply selectively.
• Loans of €500 or more are reported. A loan you repay through a refinance stays on the report for five years after the lender marks it as repaid, so ask each old lender to update its record promptly.

Not every non-bank lender reports to the CCR, so the register may not show all of your company's commitments. Lenders will still expect you to disclose them. Our guide to checking your company's Central Credit Register report explains how to get it and fix errors before you apply.

Refinancing is a chance to tidy up old guarantees and security, but only if you insist on it; our guide to secured vs unsecured business loans explains the difference. A personal guarantee usually stays in force until the lender releases it, so get a written release when each old facility is repaid. Since 1 February 2025, lenders must report guarantees on new loans to the CCR, so a guarantee can now appear on a director's personal report. Read our guide to personal guarantees for company loans and take independent legal advice before signing a new one.

Two routes that companies often ask about have firm limits:

• SBCI Growth and Sustainability Loan Scheme: the SBCI states the scheme does not allow the refinancing of existing loans or debt products. Check any other SBCI product's own terms directly with the SBCI or a participating lender.
• Revenue arrears: before refinancing a tax bill with borrowing, ask Revenue about a phased payment arrangement. The standard maximum is 36 months, and up to 60 months may be possible with a business case. Revenue's eTax Clearance manual confirms a certificate can still issue where arrears are covered by an agreed arrangement. The old debt warehousing scheme closed to new disclosures, with a deadline of 1 May 2024.

If repayments are slipping, refinancing with a more expensive lender can make things worse, and arrears will shape what lenders offer (see business loans with a poor credit history). Instead:

1. Contact your existing lender before you miss a payment and ask what alternative arrangements it can offer, such as a payment break or a longer term. A regulated lender may owe your company protections under Central Bank rules, and the Consumer Protection Code already covered companies with turnover up to €3 million; from 24 March 2026 the limit rose to €5 million.
2. Talk to Revenue early about any tax arrears.
3. Get advice from your accountant on a cash-flow forecast and a realistic plan.
4. If the company may not be able to pay its debts, take advice from an insolvency practitioner on formal options such as the Small Company Administrative Rescue Process (SCARP) or examinership.

• Debt schedule complete, including facilities from non-bank lenders.
• Redemption figures and early repayment charges confirmed in writing.
• Total cost compared, not just monthly repayments.
• DSCR checked on the new repayments.
• Company CCR report checked for errors.
• Tax affairs up to date or covered by an agreed arrangement.
• Release of old security and guarantees agreed.
• Independent legal advice on any new guarantee.

In some cases, a general unsecured business loan or working capital loan from one of the specialist lenders on our panel may help, for example to replace a costly short-term facility, but only where the numbers stack up. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead. We do not charge your company a fee and never ask for payment upfront; lenders pay us commission when finance completes. Welcome Finance is a commercial finance broker, not a lender, and is not regulated by the Central Bank of Ireland.

Our refinance savings calculator compares what is left on your current loan with the total cost of a new one, fees included.