Refinancing or consolidating business debt
Illustrative example — not a real client result
Comparing repayments and total costs across existing facilities.
The challenge
A business owner has several facilities and wants to review whether a different structure could better match the business's cash flow.
The approach
- List balances, repayment schedules, rates, fees and security for each existing facility.
- Review business financials and compare any replacement facility over its full proposed term.
- Consider exit costs, additional security and the effect of extending repayment periods.
Example outcome
The example supports a whole-of-facility comparison before deciding whether refinancing is appropriate.
Lower periodic repayments can increase total interest if the debt is repaid over a longer term.