Higher rates? Make your business debt work harder

Every business owner knows the feeling. The money comes in, then it goes straight back out again. Wages, stock, rent, super. And now a bigger slice is going to the bank.

The Reserve Bank has lifted the cash rate by one percentage point in 2026, with more rises still possible. If your business carries variable-rate debt, that's more money going to interest and less left for everything else.

So is your debt still pulling its weight?

Three options worth reviewing

• Refinancing. Comparing lenders to see whether a more competitive rate or better terms are available.
• Consolidating. Rolling suitable facilities into one to simplify repayments (and sometimes reduce the total cost).
• Changing loan terms. A different repayment structure could ease short-term cash flow.

The catch

None of these is automatically a win. Extending a loan term, for example, can lower your monthly repayments but increase the total interest you pay over the life of the loan. Consolidating can tie business assets to debt they weren't securing before. Refinancing has costs of its own.

The goal is a structure that suits where your business is heading. The smallest possible repayment may not be it.

Hot Tip: Look at your facilities side by side: rate, term, fees, security and repayment. Debt that made sense three years ago can be the wrong shape for the business you run today.

Let's review your arrangements

If higher borrowing costs are squeezing your cash flow, it may be time to rethink your existing loans. Book a complimentary review and we'll compare your options, including the costs as well as the benefits.

Book a complimentary review

This information is general in nature and does not take into account your business's objectives, financial situation or needs. Speak with your accountant about tax implications. All loans are subject to lender approval, terms and conditions.