Quick answer
Before a call about refinancing business debt, list every debt with lender, balance, repayment and end date; have recent statements for each; request payout figures (or note when you will); and be clear why you want to refinance — cost, cash flow, a balloon falling due or a lender asking you to leave. The specialist will ask about arrears, break costs and what a better outcome looks like.
Key points
- Start with a complete debt list — including merchant advances, cards and the ATO.
- Payout figures show the real amount to refinance, including fees and break costs.
- Compare total dollars over the life of each option, not just the repayment.
- Be clear on your reason: cheaper, easier to manage, or a deadline forcing a change.
Refinancing is one of the few finance conversations where the business already knows a lot about itself. You have statements, repayment histories and a clear sense of what isn’t working. The trick is getting all of that onto one page before the call, so the specialist can see the whole picture instead of piecing it together over three conversations.
Why are you refinancing?
Start here, because the answer changes the options. Common reasons:
- Cost. An expensive facility — often a short-term loan or merchant cash advance — is eating margin.
- Cash flow. Several repayments on different days are straining the account, even if each one looks manageable.
- A deadline. A balloon payment is due, a short-term loan is ending, or a lender has asked you to move on.
- Consolidation. Tax, cards and loans are scattered, and one facility would be simpler to manage.
- Releasing equity. The business or property has grown, and you want to use that strength.
business.gov.au lists refinancing existing debts on better terms as one of its practical ways to improve cash flow. Just be clear about which “better” you’re after — cheaper overall, easier month to month, or both.
What will the specialist ask?
- Which debts are you looking to replace, and what’s owed on each?
- What does each cost you, and how often do repayments come out?
- Are any in arrears or on a hardship arrangement?
- Are there break costs or early payout fees?
- Is any of it secured, and against what?
- What would a better outcome look like to you?
- How is the business trading now, compared with when the debts were taken on?
What should I have ready?
The single most useful thing is a debt list. It doesn’t need to be fancy:
| Lender or creditor | Type | Balance | Repayment and frequency | End date | Security |
|---|---|---|---|---|---|
| Example lender A | Short-term loan | $48,000 | $1,450 weekly | 9 months | Director guarantee |
| Example lender B | Merchant advance | $22,000 | Share of card takings | Variable | None |
| ATO | Activity statement | $31,000 | Payment plan, monthly | 12 months | — |
| Example lender C | Equipment finance | $26,000 | $980 monthly | 30 months | The equipment |
Illustrative figures only.
Alongside the list, have:
- recent statements for each debt
- payout figures, or a note of when you’ll request them
- recent business bank statements, downloaded as PDFs
- details of any property that could support the refinance
The call-prep tool adds anything extra that applies to your amount, state and circumstances.
When your debt list is done, request your refinance call-back here.
What’s the difference between a balance and a payout figure?
The balance on a statement is a snapshot. A payout figure is what the lender actually needs to close the loan on a specific date — including interest to that date, and any early payout fees or break costs. For some short-term facilities, the difference is significant. Ask each lender for a payout figure valid for a date a few weeks out, so you’re comparing the real amount to refinance.
Should the ATO debt be part of it?
It’s worth discussing. General interest charge and shortfall interest charge incurred on or after 1 July 2025 are no longer tax deductible, so an ATO balance costs more in after-tax terms than it used to. Our ATO debt call prep covers what to have ready for that part of the conversation.
How should I compare refinance options?
Not on the repayment alone. A lower repayment over a longer term can cost more in total. For each option, ask for:
- the total cost in dollars over the expected life, including all fees
- the repayment amount and frequency
- the security and any guarantees required
- early repayment terms if the business improves
- what happens at the end — a balloon, a residual or a clean finish
Our pages on the total cost of a business loan and exit and early repayment walk through these questions in more detail.
What if I’m already behind?
Tell the specialist straight away. Arrears don’t automatically rule out a refinance, but they change the options and the timing. It’s also worth talking to your existing lender about hardship arrangements in parallel — business.gov.au suggests speaking to creditors early and documenting every conversation. Our guide on falling behind on a business loan repayment sets out which call to make first.
What does a refinance timeline usually involve?
Refinancing takes a little organising, because several parties are involved. The usual sequence:
- First call. You share your debt list and goals; the specialist explains realistic options.
- Documents. Bank statements, loan statements, ID, and property details if relevant.
- Payout figures. Requested from each existing lender for a date close to settlement.
- Assessment and offer. The new lender assesses and issues terms — check them against your notes.
- Settlement. The new lender pays out the old debts, and old security is discharged.
The steps that most often slow things down are payout figures arriving late and existing lenders being slow to release security. Asking for payout figures early, and following up politely, keeps things moving. If a balloon payment or loan expiry date is driving the refinance, tell the specialist the date on the first call so the timeline can be planned around it rather than squeezed into the last week.
Ready to put it all in one place?
A good refinance leaves you with fewer moving parts and a clear path out. Requesting a call-back won’t trigger a credit check, your details go to one team rather than a queue of lenders, and the specialist looks at your debt picture before picking up the phone.
Please list your debts and property honestly in the request — complete, accurate answers are what let us match you properly the first time. Request your call-back and pick a window.
Frequently asked questions
What's a payout figure?
It's the amount an existing lender needs to close the loan on a given date, including interest to that date and any fees or break costs. Lenders usually provide one on request, valid until a specific date.
Should I include my ATO debt in a refinance?
Often it makes sense to discuss it. ATO interest incurred from 1 July 2025 isn't tax deductible, and unpaid business tax debts can be reported to credit bureaus in some circumstances. Whether to include it depends on the size and the other debts involved.
Will refinancing always lower my repayments?
Not always, and lower repayments aren't always cheaper. Spreading a debt over a longer term can cut the monthly figure but raise the total cost. Ask for both numbers.
What if one of my debts is in arrears?
Say so on the first call. Arrears don't rule out refinancing, but they change which options fit and how quickly things need to happen.
Who pays out the old lenders?
Usually the new lender pays the old debts directly at settlement using the payout figures, and security held by the old lenders is discharged. Ask how that will work for your refinance.