Reconcile the old loans when consolidation settles

Settlement does not complete the recordkeeping

The new consolidation loan has settled and the business expects several old accounts to disappear. Check that the intended payouts occurred and obtain confirmation of what remains. A refinance settlement statement is important evidence, but the old lenders' records may still need reconciliation. Keep the transaction open internally until the actual outcomes have been checked.

Match each payout to its account

Imagine a transport business replacing three facilities with one loan. Prepare a schedule showing the old lender, account reference, quoted payout and amount transferred. Ask about any difference. Do not assume the largest payment cleared the intended facility if the reference is unclear or the payout quote related to an earlier settlement date.

Keep estimated and actual cash distinct

business.gov.au's cash-flow guidance says estimated figures should be clearly identified and explained. Replace forecast refinance entries with confirmed amounts as evidence arrives. Show any unresolved fee or residual balance separately. The business needs to know the money still available after settlement rather than continue relying on the simplified figures used in the original proposal.

Source: business.gov.au: Set up a cash flow statement

Check continuing deductions

Monitor the bank account for old loan debits and reconcile them promptly with the relevant lender. Ask about cancellation or refund processes where necessary; do not simply assume every deduction is an error. In the transport example, a payment taken near settlement may need to be included in the final account reconciliation rather than overlooked because the loan was expected to close.

Obtain appropriate closure evidence

Ask the adviser what documents should confirm repayment, closure and any agreed release of security or guarantees. These are related but different questions. Keep the relevant confirmations together and follow up missing items. Avoid describing all personal obligations as released merely because a loan balance now appears as zero in an online portal.

Complete the handover to finance

Give the accountant the confirmed transaction schedule, new repayment terms and unresolved items. Update the cash forecast and diary for the new facility. Record who will follow up any remaining old-account issue. Consolidation should leave a clear trail from the previous debts to the new arrangement, not a tidy new repayment sitting above unreconciled old obligations.