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 7 business debt consolidation loans
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
OnDeck - Online term loan with Fundera by NerdWallet | 4.7/5 Best for Fast business debt consolidation loans | $250,000 | 625 | with Fundera by NerdWallet |
Fora Financial - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Business debt consolidation loans for bad credit | $1,500,000 | 570 | 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 |
Accion Opportunity Fund - Small Business Working Capital Loan | 4.6/5 Best for Unsecured business debt consolidation loans | $250,000 | 570 | Read Review |
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA business debt consolidation loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Bank of America Business Advantage Secured Term Loan | 4.2/5 Best for Bank business debt consolidation loans | Undisclosed | 700 | Read Review |
TAB Bank - Term loan | Best for Low-interest business debt consolidation loans | $300,000 | 660 | |
Here are 7 business debt consolidation loans
Best for Fast business debt consolidation loans
Best for Business debt consolidation loans for bad credit
Best for Long-term business debt consolidation loans
Best for Unsecured business debt consolidation loans
Best for SBA business debt consolidation loans
Best for Bank business debt consolidation loans
Best for Low-interest business debt consolidation loans
Max Amount
$300,000
Min. Credit Score
660
I'M INTERESTED IN:
Our pick for
Fast business debt consolidation loans
OnDeck offers fast funding on term loans — the same day in some cases — along with flexible qualification requirements.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
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
570
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
Unsecured business debt consolidation loans
Accion Opportunity Fund offers business debt consolidation loans that don’t require physical collateral.
Accion Opportunity Fund - Small Business Working Capital Loan
Max loan
$250,000
Min. Credit score
570
Apr range
8.49-24.99%
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
Bank business debt consolidation loans
Bank of America offers secured business loans that require collateral, but can be used for a variety of purposes, including business refinance.
Bank of America Business Advantage Secured Term Loan
Max loan
Undisclosed
Min. Credit score
700
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%
What is a business debt consolidation loan?
🤓 Nerdy Tip
Debt consolidation vs. debt refinancing: Business debt consolidation loans are different from debt refinancing — although the two are sometimes confused. Typically, the goal of refinancing a business loan is to get a new loan with more favorable terms to pay off an existing loan. It’s not to combine multiple debts into one loan, as is the case with a debt consolidation loan.Types of business debt consolidation loans
- Bank loans. Loans from traditional banks typically offer the most competitive rates and terms. Bank business loans can be difficult to qualify for, however, requiring several years in business and excellent credit. Secured business loans, like Bank of America’s Business Advantage Secured Term Loans, may be easier to qualify for because fixed assets are pledged to back up repayment. Bank loans can be slow to fund.
- SBA loans. If you can’t qualify for a bank loan, SBA loans are a great alternative, offering competitive interest rates and long repayment terms. The 7(a) loan program is the SBA’s primary business loan program and can be used to refinance current business debt. Because these loans are partially guaranteed by the U.S. Small Business Administration, it can be a little easier to qualify, but SBA lenders still usually require good credit and multiple years in business. And, like bank loans, SBA loans can be slow to fund.
- Online loans. These loans may be a good option for newer businesses or those with fair or bad credit. For example, Fora Financial requires that businesses only be in operation for6months and have a minimum credit score of570. Although online business loans typically have flexible qualification requirements, this flexibility can result in higher interest rates and shorter repayment terms. These loans tend to fund much more quickly than bank and SBA loans, however, often in days.
- Nonprofit loans. Nonprofit lenders offer loans designed to benefit low-income and underserved communities that can be a good option for women, minority and veteran business owners. These organizations may provide a range of loan options and how the funds can be used varies by lender. For instance, Accion Opportunity Fund’s small-business working capital loan can be used to consolidate business debt among other things.
How to consolidate business debt
1. Determine how much you owe
2. Identify which loans to include
3. Evaluate your qualifications
4. Compare business debt consolidation options
- Interest rates.
- Repayment terms.
- Additional fees.
- Funding speed.
- Application process.
- Customer service.
5. 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 business debt schedule.
6. Sign loan documents and pay off existing debts
Pros and cons of business debt consolidation loans
Pros
Cons
How to compare business debt consolidation loans
- Annual percentage rate: The annual percentage rate (APR) of a loan includes the interest rate plus fees charged by the lender. Because lenders often charge different interest rates and loan fees can also vary, it may be hard to determine which loan is the most cost effective. Using the APR to compare loan offers can help you determine the yearly cost of each and which one might be the least expensive in the long run.
- Loan terms: Lenders offer different loan terms. Some lenders may offer long repayment periods which could mean lower monthly payments, but possible higher interest costs over the life of the loan. Other lenders may offer short loan terms which may allow you to pay less in interest, but which might also require a larger monthly payment. A business loan calculator can be helpful in seeing the amount of your monthly payment and how much interest you will pay during the loan term.
- Funding speed: Your loan choice can also be influenced by how quickly you need the funds. If you are looking for a fast business loan, online lenders may be a good option. However, if you don’t need the capital quickly, traditional bank loans would typically offer better interest rates than an online lender. However, bank loans can be difficult for small businesses to qualify for.
- Pledged assets: Lenders often require collateral or a personal guarantee to secure funding. The type of assets — business or personal — used to guarantee the loan are something for you to consider. For example, an unsecured business loan may require a personal guarantee where your personal assets could potentially be seized if you default on the loan. A secured business loan may require collateral in the form of a business asset such as equipment, inventory or property, plus, in some cases, a personal guarantee.
What if you can’t get a business debt consolidation loan?
Business loan refinance
Debt payment strategy
Business loan restructure
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.