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Compares your current monthly outgoings with a single consolidated facility. A longer term can lower payments but raise total cost.
Step 1: list every facility
Write down each debt with its balance, rate, remaining term and monthly payment — loans, cards, asset finance, overdraft. You cannot judge consolidation without the full picture. This list is the foundation of the decision.
Step 2: total the cost to run them out
For each facility, work out the total you would repay if you simply ran it to the end. Add these up. This is the number a consolidation loan has to beat — the true cost of doing nothing. See total cost of credit.
Step 3: cost the consolidation loan
Work out the full cost of a single loan large enough to clear them all, including any arrangement fee and any early settlement charges on the debts you are repaying. Only the all-in figure is a fair comparison.
Step 4: switch only if it saves
Compare the two totals. If consolidation costs less, or costs the same but materially improves your monthly cash and cover, proceed. If it only lowers the payment by stretching the term at a higher total cost, think again. See consolidating business debt.
Run the comparison
Use the calculator to set your current debts against a single consolidated facility.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
How do I consolidate business debt?
List every facility with its balance, rate and remaining term; total the cost of running each to the end; cost a single loan that clears them all, including fees; and switch only if the numbers genuinely improve.
What costs should I include in a consolidation comparison?
The arrangement fee on the new loan and any early settlement charges on the debts you are repaying, alongside the interest. Only the all-in figure gives a fair comparison against running the debts out.
When should I not consolidate?
When the only benefit is a lower monthly payment achieved by a longer term at a higher total cost. Consolidation should save money or materially improve cash flow, not just repackage the same debt for longer.
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