Top 4 Signs It’s Time to Refinance and Repackage Your Business Debt – And We Can Help

High‑cost, short‑term borrowing often creeps up on a business: an overdraft here, a merchant cash advance there, a hire‑purchase deal added for new kit. UK SMEs now juggle an average of 3‑4 separate credit lines , and after 2022–24 rate hikes many are paying far more than they need to stay afloat.

Refinancing replaces expensive or fragmented debt with a single, longer‑term facility on better terms. Below are the five clearest signals that it’s time to explore a refinance—and the strategic solutions Principal Business Finance can arrange.

Monthly repayments are throttling your cash flow

If more than 20‑25 % of monthly revenue goes straight to debt service, working capital dries up. Consolidating into a 5‑ to 10‑year secured business loan can cut outgoings by 40‑60 %. We regularly shift clients from double‑digit APRs to single‑digit rates secured on property or equipment.

Your business has grown but your finance hasn’t

Turnover up? Credit score improved? Assets acquired? Lenders reward that progress with lower margins and higher loan‑to‑value ratios. Principal Business Finance reviews your new profile and places you with lenders specialising in your sector (logistics, engineering, hospitality, etc.).

You’re juggling more than two loan or credit products

Multiple repayments = multiple fees, admin and stress. A secured consolidation loan merges overdrafts, MCA balances, high‑interest leases and card debt into one predictable repayment—often freeing £5k–£15k per month for reinvestment.

Growth opportunities are on hold because of existing debt

The British Business Bank reports that 1 in 4 SMEs delay investment because current borrowing blocks new credit . Refinancing resets your debt profile, improves balance‑sheet ratios and opens the door to fresh working‑capital or asset‑finance lines.

How Principal Business Finance Ltd Makes Refinancing Easy

• Whole‑of‑market access – 100+ UK lenders including non‑bank specialists filling the gap left by cautious high‑street banks

• Tailored structures – secured term loans, asset‑refinance, sale‑and‑leaseback or hybrid packages

• Fast turn‑round – indicative terms in 48 h; funds in as little as 7–10 days

• Five‑star service – hands‑on support from application to completion and beyond

Ready to run the numbers?

If any of the five signs sound familiar, a refinancing review could transform your cash flow and growth capacity.

📞 Talk to Principal Business Finance Ltd today for a free, no‑obligation appraisal. Contact us on 01604217998, email info@principalbusinessfinance.co.uk, or enquire here.