Rangewell

Securing a Streamlined £175,000 Debt Consolidation Refinancing Agreement for Successful Business

By Rose Brown
Content writer
Published: 12 October 2022 1 minute read
Rangewell

How to consolidate multiple debts with efficient refinancing

When a business that had multiple debts approached Rangewell for advice on refinancing, we were able to identify a route to consolidating all of their debts into a single repayment that offered superior rates and terms. This, in turn, meant the client benefitted from easier debt management and a more affordable loan overall.

Table of Contents

When a business first starts up, the hectic nature of the market means we often find ourselves taking out multiple loans just to keep things going. From your standard overdrafts through to commercial mortgage agreements, asset finance, business loans and more, there are lots of products available to help fund new businesses – but managing them all can be a headache. 

Businesses across all sectors struggle when they have too many individual loan agreements across multiple lenders. Not only does it make it harder to manage your repayment schedule and cash position, but also causes challenges when you want to grow your business. 

For a client of ours who approached Rangewell to help with debt consolidation, their previous finance agreements were all taken out when the business was still ‘finding its feet’. After they’d strengthened their business position and solidified their offering and profitability, they decided to explore the credit market to see if they could find a better option. 

Why was there a problem?

When the business in question was new to the market, they struggled to find funding. To gather the cash they needed, they had to take on multiple agreements, which all carried higher interest rates. It is common for new businesses to take on more restrictive finance agreements, as lenders must balance the risk of a new business and can only offer certain agreements as a result. 

However, rather than simply accepting these rates and debts as permanent, the client realised that having to repay each individually was not efficient and they wanted to explore a way to consolidate them into a single repayment.

The new loan would be negotiated based on the business’s most recent performance metrics and far more robust history, having operated for four years and grown even during the pandemic. 

Why we were able to help

When the client approached us, they had a total debt of £112,000 which was split between three lenders. We were able to help them build an application that showed their business in the best light, with clear evidence of business growth and strong financial performance.

We took these financial projections to a range of lenders to assess which rates and terms would be offered. We then advised the client and worked with them to choose the optimal agreement – which was decided to be a loan for £175,000. This loan granted a new cash injection for the client to use, but also reduced their interest rates by half by extending the repayment period. 

In summary, the client’s debts went from being repaid across three lenders with varying interest rates and points of contact to a single lender that offered more affordable interest rates and an added cash injection for the business to utilise. 

Refinance and consolidate debts

If you’ve got multiple debts in place and you’re struggling to balance repayments and interest rates across each, why not explore debt consolidation? If you’re in a good business position thanks to growth or financial success, you can benefit from superior rates and terms from a single lender who agrees to take on all your other debts and streamline repayment. 

Rather than go it alone and try to negotiate in the dark, choose Rangewell. We’ll work with you at no cost to help find the right lender and credit agreement that takes care of your multiple debts and results in a single, more manageable repayment. 

Visit debt consolidation to learn more about the process. 

Consolidate your debts today

Refinance with Rangewell's help

Call us
Schedule
Email


 

You may be interested in...

Farmer Raises £60,000 To Purchase New Storage Facility within 5 daysCase Study

Farmer Raises £60,000 To Purchase New Storage Facility within 5 days

When your ineligible for unsecured lending, planning any form of expansion can feel restrictive or in some cases, imposs...

20 January 2023
Asset Refinancing Provides £40,000 Capital Injection For New Delivery BusinessCase Study

Asset Refinancing Provides £40,000 Capital Injection For New Delivery Business

New businesses can often struggle to secure finance from lenders due to their inexperience and lack of security. However...

20 January 2023
Refinancing £130,000 To Fund Plant Hire Recovery Post-PandemicCase Study

Refinancing £130,000 To Fund Plant Hire Recovery Post-Pandemic

The COVID-19 pandemic led to enormous disruption in all aspects of UK business. While government-led initiatives have he...

18 January 2023
Refinancing Restrictive 20-Year GP LoansCase Study

Refinancing Restrictive 20-Year GP Loans

Historically, GPs in the UK have taken on finance agreements that have come with highly restrictive terms. One well-know...

28 November 2022
How to Refinance Land

How to Refinance Land

There are many costs to consider, including the initial purchase as well as the cost of securing planning permission and...

20 October 2022
A Guide to Buy-to-Let Remortgages

A Guide to Buy-to-Let Remortgages

The popularity of the loan option means lenders can demand more of you as a borrower before they agree to fund the loan,...

20 October 2022
How to Refinance Business Loans & Business Debt

How to Refinance Business Loans & Business Debt

Debt, like many other aspects of your business, must be proactively managed to ensure it doesn’t cause too much de...

20 October 2022
How to Refinance Commercial Property in the UK

How to Refinance Commercial Property in the UK

Whatever type of business you run, if you’ve got outstanding finance on a property, you can benefit from refinanci...

20 October 2022

Our service is:

Impartial

Transparent and independent, treating all lenders equally, finding the best deals.

In-depth

Every type of finance for every type of business from the entire market - over 300 lenders.

Personal

Specialist Finance Experts support you every step of the way.

Free

We make no charge of any kind when we help you find the loan you need.