How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 5 business debt consolidation loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA business debt consolidation loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Long-term business debt consolidation loans | $500,000 | 660 | with Fundera by NerdWallet |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Business credit card debt consolidation loans | $250,000 | 625 | with Fundera by NerdWallet |
TAB Bank - Term loan | Best for Low-interest business debt consolidation loans | $300,000 | 660 | |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Business debt consolidation loans for bad credit | $1,500,000 | 500 | with Fundera by NerdWallet |
Here are 5 business debt consolidation loans
Best for SBA business debt consolidation loans
Best for Long-term business debt consolidation loans
Best for Business credit card debt consolidation loans
Best for Low-interest business debt consolidation loans
Max Amount
$300,000
Min. Credit Score
660
Best for Business debt consolidation loans for bad credit
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Our pick for
SBA business debt consolidation loans
The most popular of the SBA loans, 7(a) loans offer long-term, flexible financing — although they are slow to fund.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Long-term business debt consolidation loans
Funding Circle offers loans with repayment terms up to seven years. You can receive funding in as little as two days.
Funding Circle - Online term loan
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
Our pick for
Business credit card debt consolidation loans
You can use a loan from OnDeck to consolidate business credit card debt, among other purposes.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
Our pick for
Low-interest business debt consolidation loans
TAB offers competitive interest rates and long repayment terms, and it can fund faster than other traditional lenders.
TAB Bank - Term loan
Max loan
$300,000
Min. Credit score
660
Apr range
8.99-35.99%
Our pick for
Business debt consolidation loans for bad credit
You may be able to qualify for a loan from Fora Financial with a minimum credit score of 500 or higher and at least six months in business.
Fora Financial - Online term loan
Max loan
$1,500,000
Min. Credit score
500
What is a business debt consolidation loan?
Types of debt consolidation loans
Bank loans
SBA loans
Online loans
How to consolidate business debt
1. Determine how much you owe
2. Evaluate your qualifications
3. Compare business debt consolidation options
4. Gather documentation and apply
- Basic information about you and your business.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements.
- Existing debt schedule.
5. Sign loan documents and pay off existing debts
Pros and cons of business debt consolidation loans
Pros
- Simplified payments. By combining multiple existing debts into a single loan, it can be easier to manage your finances and loan payments. Instead of having to make several payments to different lenders, you make one payment to one lender every month.
- Lower interest rates. Although this isn’t always the case, you may be able to secure a lower interest rate and decrease the interest costs on your debt.
- Lower monthly payment. Sometimes a debt consolidation loan can result in a lower monthly payment and can help free up cash that you can use to cover day-to-day expenses. A lower payment may be due to a lower interest rate, smaller loan amount or longer loan term.
Cons
- Longer repayment terms. Although longer repayment terms can lower your monthly payment and make repaying more manageable, you will be accruing interest over a longer period of time and could end up paying more in interest over the course of the loan.
- Lower rates are not guaranteed. When you apply for business debt consolidation, you’re not guaranteed to receive a loan with lower interest rates than what you’re paying now. If you can’t access better rates, a consolidation loan may not be the right option for your business.
- Additional fees. You may have to pay additional fees when taking out a debt consolidation loan — which can affect the potential money you save by consolidating. Your existing lenders may charge prepayment penalties for repaying early and you may also have to pay an origination fee on your new loan.
Alternatives to business debt consolidation loans
- Business loan refinance. If you can’t roll all your business debt into a single loan, refinancing one or more loans individually may be a good alternative. Some banks, like Bank of America, have business term loans that can be used to refinance equipment, vehicles or real estate. Like a business debt consolidation, you’ll want to make sure the refinance will meet your goal whether that's a lower interest rate, lower monthly payment or something else.
- Restructuring a business loan. If you are finding it difficult to make monthly debt payments, you can reach out to your lenders to see if it is possible to restructure your loans or possibly make interest-only payments for a set period. While restructuring a business loan will typically affect your credit score, it’s likely to do less damage than defaulting on the debt.
Find the right business loan
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.