Refinancing Your Business Loans | Capitalise

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Many of us compare deals for personal finance, like credit cards and insurance. But when did you last check your business finance?

Refinancing a business loan can help lyou get a better interest rate. It can also help you extend your repayment term. You can even combine multiple loans into one easy payment. Refinancing is not just about saving money, it's about making your finance work for your current goals.

At Capitalise.com, we work with over 100 institutional, alternative, and independent lenders to help UK SMEs secure better terms. If you want to refinance a short-term loan, a merchant cash advance, or a secured business loan, our funding team can help. We will help you compare and choose the right lender quickly.

Cut down repayments with more competitive rates

Most business loans come with interest and fees. Changing an old loan for a better deal can help your business save on interest costs. This way, you can keep more working capital each month.

According to the British Business Bank’s 2024 report, 58% of smaller businesses said credit was “too expensive”, and 55% said they “could not borrow at a reasonable rate” (BBB 4th March 2024). Refinancing provides businesses that feel locked out of affordable finance a way to address these cost concerns.

If your business credit score has improved since your original loan, you may qualify for lower interest rates. We see businesses get rates 1% lower after just 12 months of good repayment. This is especially true if your credit score was low when you took out the loan. With reduced rates and fees, you can lower monthly payments, shorten loan terms, or both, freeing up cash to reinvest in your operations.

Convenient repayment terms that fit in with your evolving business

When business picks up or slows down, your financial commitments should remain manageable. Refinancing allows you to adjust your repayment schedule based on your current cash flow needs, not outdated projections.

For example, to ease pressure during quieter months, you could extend the loan term. Or if you want to become debt-free sooner, you can opt for shorter terms with higher repayments. Refinancing supports your long-term goals, making your loan work with your growth plans—not against them.

Increase your borrowing to improve cash flow

Sometimes, refinancing isn’t just about reducing repayments—it’s about accessing more capital to scale. If you plan to invest in equipment, hire staff, or expand to new markets, a refinance loan can help. It allows you to do this without needing multiple loans.

Refinancing can combine your current debt and provide extra funds. It also simplifies your repayment into one easy plan. With better terms and more flexible repayment structures, you can improve your day-to-day cash flow and focus on building your business.

Business refinancing: case examples

Businesses refinance for more than just a lower rate. A seasonal retailer might refinance to ease payments during quiet months. A growing e-commerce brand may consolidate debt to invest in inventory. Even newer businesses can benefit from improved creditworthiness since their first funding.

No matter if you are in retail, manufacturing, services, or tech, refinancing can help you adjust your funding strategy. It can align with your business's current needs and future goals.