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Best Loans to Consolidate Your Business Debt

Consolidating business debt with a lower-interest business loan can boost your cash flow by lowering your monthly payment and shortening your repayment period.
Jackie ZimmermannSeptember 20, 2021
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Financially-savvy small-business owners looking to free up some extra cash could consider refinancing or consolidating loans that have high interest rates.
Refinancing or consolidating could lower your monthly payments and help you grow your business. Established businesses with strong finances typically qualify for the lowest rates with long repayment periods, but you also have options with online business lenders.

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Funding Circle - Online term loan

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Est. APR

12.18-36.00%

Min. Credit Score

660

Funding Circle is an option for established businesses that are financing an expansion or refinancing debt.

Pros

  • Cash can be available within 3 business days.
  • Competitive rates among online lenders.
  • No minimum revenue requirement.

Cons

  • Requires business lien and personal guarantee.
  • Not available in Nevada.
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Qualifications:

  • Minimum credit score: 660.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: None.
  • No bankruptices in the past 7 years.
May fund quickly
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Credibility Capital - Online term loan

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Est. APR

6.99-24.99%

Min. Credit Score

650

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.

Pros

  • Competitive rates among online lenders.
  • No prepayment penalty.
  • Extra monthly payments can save interest cost.

Cons

  • Requires high minimum credit score and revenue.
  • Requires business lien and may require personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota or Vermont.
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Qualifications:

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $200,000.
  • No bankruptcies in the past 5 years.

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Summary of Best Loans to Consolidate Your Business Debt

LenderEst. APRMin. Credit ScoreNext Steps

Funding Circle - Online term loan

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12.18-36.00%660
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Credibility Capital - Online term loan

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6.99-24.99%650
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with Fundera by Nerdwallet

What is business debt consolidation?

With business debt consolidation, you combine several loans or merchant cash advances into one loan — ideally with a lower interest rate that could result in lower payments and a shorter repayment period.
Business debt consolidation is sometimes confused with debt refinancing, which means you take out a lower-interest loan and use it to pay off the original, thereby saving money.

Business debt consolidation options

SBA loans, which are backed by the U.S. Small Business Administration, offer the best terms, including low interest rates and flexible repayment. To qualify, you typically need to be an established business with solid revenue and have a good credit score.
You can also turn to banks to qualify for traditional business loans to consolidate your debt. Bank loans can also have competitive rates and terms depending on your business and personal finances.
Besides banks, you can turn to online lenders for business debt consolidation and refinancing. Online lenders often have less stringent requirements than traditional banks.

Find and compare small-business loans

NerdWallet has created a list of the best small-business loans to meet your needs and goals. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged the lenders by categories that include your revenue and how long you’ve been in business.
Last updated on September 20, 2021

To recap our selections...

Best Loans to Consolidate Your Business Debt

Does your business need funding? Find your best loan options with Fundera by NerdWallet.

See Your Options