Debt Consolidation: Why Business Owners & Investors Are Turning to Smarter Debt Structures

At CapStack, we’re seeing a clear trend across the market: business owners and investors are reassessing their entire debt stack. Whether it’s driven by cash-flow pressure, rising interest costs, a desire to simplify repayments, or the need to free up capital for growth - debt consolidation is becoming a strategic tool, not just a reactive one.

Debt portfolio management is key.

What Is Debt Consolidation?

Debt consolidation is the process of rolling multiple existing debts into one structured facility that is easier to manage and more cost-effective. It can combine:

• Business loans

• Property-secured debt

• Equipment finance

• ATO payment plans

• Overdrafts

• Short-term working capital

• Private or ad-hoc loans

The goal is simple: one lender, one repayment, one strategy.

Why Business Owners Are Considering It

1. Improve Cash Flow

Consolidation can spread repayments over a more manageable term, easing monthly pressure and giving the business room to breathe.

2. Reduce Interest Costs

Short-term or high-rate facilities often become expensive quickly. Consolidating them into a longer-term structure can significantly reduce costs.

3. Unlock Capital for Growth

A well-structured refinance can free up equity or borrowing capacity — allowing owners to invest, hire, acquire or expand.

4. Simplify Financial Management

Managing multiple facilities across different lenders is complex. Consolidation creates clarity and consistency.

5. Strengthen Future Borrowing Capacity

A cleaner balance sheet and clearer repayment profile gives lenders greater confidence — improving access to future funding.

Who Should Consider It?

Debt consolidation isn’t only for businesses under strain. It’s equally powerful for operators who want to sharpen their capital structure.

You might consider it if:

• Cash flow is tightening

• Your debt has accumulated across multiple products or lenders

• You’re planning for upcoming growth or investment

• Your interest rates or repayments have crept too high

• You want a simpler financial picture heading into FY25–26

• You’re carrying ATO, private, or short-term debt that’s holding the business back

Even strong, profitable businesses consolidate to position themselves for the next phase.

How the Consolidation Process Works

At CapStack, we typically follow a structured, outcomes-focused approach:

1. Full Debt Assessment

We review every facility - structure, cost, term, security and utilisation.

2. Cash-Flow & Scenario Modelling

We model how different consolidation structures impact your monthly and long-term obligations.

3. Lender Strategy

Depending on urgency, flexibility and goals, we match you with the right bank, non-bank or private lender.

4. Restructure & Refinance

All existing debts are rolled into a single, optimised facility that aligns with your business strategy.

5. Ongoing Capital Planning

We advise on how to use your improved position to invest, grow or build resilience.

The importance of strategic debt planning in today's business environment is something businesses cannot ignore.

Why This Matters in Today’s Market

With higher funding costs, tighter credit conditions, and more volatile cash-flow cycles, the structure of your debt can be just as important as the cost of your debt.

Businesses that proactively consolidate often:

• Strengthen liquidity

• Reduce stress

• Improve lender relationships

• Create more space to grow

• Move from reactive management to strategic planning

In a market where agility matters, consolidation is a powerful lever.

Why CapStack

Business owners choose CapStack because we don’t treat consolidation as a simple refinance — we treat it as a capital strategy. With access to more than 70 bank, non-bank and private lenders, we build solutions that balance cost, flexibility and future growth potential. Our team takes the time to understand the story behind the debt, the direction of the business, and where the biggest structural advantages can be found.

We specialise in complex, multi-lender consolidation deals - the situations where clarity, creativity and lender relationships matter most. If you’re looking for a partner who can restructure your debt stack with precision and set your business up for its next phase, CapStack is built for exactly this work.

Reach out to the team at CapStack today for a confidential consolidation review.