Can I have more than one business loan at once?
Yes, and plenty of businesses run more than one facility. Whether you can take another depends on two things: whether the payments are affordable alongside what you already have, and whether an existing lender has taken security that gets in the way.
Affordability is the first test
Lenders work out what you can service after existing commitments, which is why the existing borrowing schedule is asked for. Understating it does not help: it shows up in the bank statements as payments nobody declared, and that damages the application more than the debt would have.
Security is the second
If a previous lender holds a debenture, the next one is being asked to rank behind it. Some will, priced accordingly. Some will not. This is the quiet reason a second facility gets declined when the numbers look fine.
Stacking, and why it is a problem
Taking several short-term facilities in quick succession is called stacking, and lenders watch for it. It reads as a business servicing debt with more debt. If that is where you are, consolidating into one longer facility is usually the better conversation, and we would rather have it than add to the pile.
Declare all of it
List everything: loans, credit lines, merchant cash advances, asset finance and overdrafts. A revolving facility or a cash advance is still a commitment even though it does not look like a loan, and the payments will be in the statements. Asset finance counts too, even though it is secured on a machine or a vehicle rather than on the business.
When the first agreement says no
Some loan agreements restrict further borrowing, or require the lender’s consent before you take on more. Breaching that can put the first loan in default even if every payment has been made on time. Read the existing agreement before you sign a new one, or ask us to.
Consolidating
Replacing several facilities with one can lower the monthly total and make life simpler, but it is not automatically cheaper. A longer term on the combined amount can cost more overall, and any charges for settling the old facilities early have to be counted in.
Before you consolidate, add up what each facility would cost to clear today and what the new one costs over its full term. If the new total is higher, you are paying for a lower monthly figure. That can still be the right choice. It should be a conscious one.
Common questions
Can I borrow from another lender while I have a loan with my bank?
Yes. Nothing ties you to one lender. The new lender will count the bank loan in its affordability check, and if the bank holds security, the new lender will see that too. If you are unsure what the bank holds, the Companies House register shows any charge it has taken.
Does a merchant cash advance count as existing borrowing?
For affordability, yes. Strictly it is a purchase of future card takings rather than a loan, but it takes a share of your income every day, and any lender reading your statements will treat it as a commitment.
Will a second loan hurt my credit file?
Not of itself. Two well-run facilities read well. What hurts is missed payments, or several new facilities opened in a short space of time.
Can I borrow from the same lender a second time?
Often, and a lender you have paid on time is sometimes the easiest second yes, because it already knows the account. Some will add to the existing facility rather than open another, which keeps things simpler. It is still a fresh decision, made on the business as it is now.
Get a straight answer on your own numbers
About a minute, no credit check, and nothing is submitted without you.
Get my options