Sometimes. Refinancing can make sense when it lowers your costs, gives you a longer term or combines several facilities into one. It isn't the answer if the underlying problem is that the business can't afford its repayments.
When refinancing can help
- A better rate or term: replacing expensive or short-term borrowing with something cheaper or longer.
- Combining facilities: fewer repayments to manage.
- Premises: refinancing a commercial mortgage, or replacing rent with ownership. See Can you arrange a commercial mortgage for business premises?.
- Replacing a merchant cash advance with a loan that costs less. See What is a merchant cash advance, and when is a loan cheaper?.
Under the Growth Guarantee Scheme
GGS facilities can be used to refinance existing debt in some cases, including earlier CBILS, BBLS or RLS loans. A refinance is treated as a new application. If you refinance a Bounce Back Loan, you lose its special protections, so think carefully.
When it doesn't help
If repayment depends on a one-off spike, or there's no clear source of repayment, borrowing more or borrowing differently only delays the problem, with interest. We'll tell you if that's the case, and what to fix first.
Tax bills
If the pressure comes from a tax bill, ask HMRC about Time to Pay first, then compare it with a loan. Read Can't pay your VAT bill?
Last reviewed: 8 October 2026