Best of
Best Loans to Consolidate Your Business Debt
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Our pick for
The lowest rates
SmartBiz - SBA loan
Est. APR
9.28 - 10.52%
Min. Credit Score
650
Pros
- Competitive rates among online lenders.
- Faster than getting an SBA loan from a bank.
Cons
- Must have strong financials, supported by personal and business tax returns for the past 3 years.
- Stringent rules on use of proceeds.
- Requires business lien and personal guarantee.
Qualifications
- Minimum credit score: 650.
- Minimum time in business: 2 years.
- Minimum annual revenue: $50,000.
- No bankruptcies or foreclosures in the past 3 years.
Our pick for
Businesses with low revenue
Funding Circle - Online term loan
Est. APR
12.18 - 36.00%
Min. Credit Score
660
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.
Qualifications
- Minimum credit score: 660.
- Minimum time in business: 2 years.
- Minimum annual revenue: None.
- No bankruptices in the past 7 years.
Our pick for
Businesses at least 2 years old
Credibility Capital - Online term loan
Est. APR
19.99 - 24.99%
Min. Credit Score
680
Pros
- Competitive rates among online lenders.
- No prepayment penalty.
- Extra monthly payments can save interest cost.
Cons
- Short repayment term results in higher payment amounts.
- 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.
Qualifications
- Minimum credit score: 680.
- Minimum time in business: 2 years.
- Minimum annual revenue: $250,000.
- No bankruptcies in the past 5 years.
Summary of Best Loans to Consolidate Your Business Debt
| Lender | Best For | Est. APR | Min. Credit Score |
|---|---|---|---|
SmartBiz - SBA loan | The lowest rates | 9.28 - 10.52% | 650 |
Funding Circle - Online term loan | Businesses with low revenue | 12.18 - 36.00% | 660 |
Credibility Capital - Online term loan | Businesses at least 2 years old | 19.99 - 24.99% | 680 |
1. SmartBiz: For the lowest rates
When combining your business debt into one bundle, you want the lowest possible annual percentage rates. That makes SmartBiz your most attractive option. The online platform connects business owners with loans backed by the Small Business Administration, which have the most competitive rates on the market.
2. Funding Circle: For businesses with low revenue
Established businesses looking for competitive APRs and fast cash might want to check out Funding Circle. Its application process takes about 10 days but is still faster than SmartBiz, making it a solid option for healthy businesses looking for faster financing.
3. Credibility Capital: For businesses at least 2 years old
Credibility Capital offers short-term financing — one, two or three years — to companies with good credit, making it a valid option for businesses looking to refinance expensive debt. Three years is the shortest maximum repayment period among the lenders in our list.
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 November 21, 2019
To recap our selections...
NerdWallet's Best Loans to Consolidate Your Business Debt
- SmartBiz - SBA loan: Best for The lowest rates
- Funding Circle - Online term loan: Best for Businesses with low revenue
- Credibility Capital - Online term loan: Best for Businesses at least 2 years old
