Stef’s market update – April 2026 – why more businesses are restructuring their debt

We probably don’t need another reminder of what’s going on in the wider economy.  Higher costs, tighter margins and an increasingly risk-averse lending market are hardly secrets in today’s environment.

The difference is what we’re witnessing on the ground with business owners starting to take stock of existing arrangements and refinancing their debt.

One of our new clients has benefited greatly from this approach. After growing rapidly, it ended up with four loans from various lenders at high interest rates.

While each loan made sense when initially arranged, together they represented a considerable burden on cash flow. We assessed the business model and determined its funding requirements based on future needs.  Based on this, we structured a solution with an alternative lender that would help support the next phase of growth.

The outcome was a £200k refinance with all existing debts consolidated into one facility. Repayments were reduced from around £15k per month to £4k – with significant savings on interest payments.

But it’s also worth noting that this deal helped restore breathing room to the business, which was essential.

There are more stories like this that involve businesses that have expanded rapidly, financed themselves through the process, and are now in a position to restructure their debt.

Sometimes, it’s not necessarily a matter of increasing funding but finding the right structure for existing obligations.

If your funding feels burdensome or difficult to manage, it might be wise to pause and reassess it.