Business debt consolidation can help small business owners roll multiple high-interest balances into one predictable payment with potentially better terms. If you borrowed during higher-rate periods or relied on expensive short-term funding in the past, refinancing now could lower your monthly payments and improve cash flow. Here are some of the best business debt consolidation lenders, organized by category.
Our lending experts analyze dozens of business loan providers to narrow down the best options for business owners. We weigh lenders against 12 key metrics:
We also search for lenders that cater to a range of needs, including those that work with bad credit and newer business owners.
Here are the top things to keep in mind when comparing business debt consolidation loans:
With a business debt consolidation loan, you pay off multiple existing loans and credit cards with a new loan with better rates or terms. This can manage debt by rolling multiple payments into one and help you pay it off sooner.
The best loans for debt consolidation are term and SBA loans, since they tend to offer the most competitive rates and longest repayment terms. You would apply for these loans just like any other business loan, qualifying based on your business revenue, credit score and time in business.
After the loan is approved and funded, you pay back the loan in fixed payments composed of principal and interest. You may also have the option of paying it off before the term is up, but you’ll need to check whether prepayment penalties apply.
Want to see what other options are out there for business debt consolidation? Check out the lenders below:
The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.
Here are the most popular types of business loans used for debt consolidation.
| Type | Typical loan amounts | Typical term lengths |
|---|---|---|
| Long-term loan | $5,000 to $2M | 2 to 10 years |
| Short-term loan | $5,000 to $500,000 | 1 to 3 years |
| SBA loan | Up to $5M | 6 to 25 years |
To qualify for a debt consolidation loan, you’ll need to meet the lender’s revenue, credit score and time-in-business requirements. While every lender is different, be prepared to meet the following criteria:
Because a new debt consolidation loan is adding to your existing debt load, the lender will need to verify you can handle the new payment based on your revenue and cash flow.
Applying for a debt consolidation loan is similar to applying for other business loans. You’ll need to prepare your application, compare lenders and ensure your budget can handle the new payment after you consolidate.
Loans for debt consolidation are available from traditional banks, credit unions and online lenders. While banks and credit unions tend to have the lowest rates — especially if you’re an existing customer — online marketplaces like Lendio, Lendzi and Biz2Credit have multiple lender relationships, which could help you snag a good deal.
Prequalification involves answering a series of questions about yourself and your business to determine your eligibility before you formally apply for a loan.
Here are the general steps:
Once you’ve narrowed down your options based on your prequalification offers, you can formally apply for a loan with the lender of your choice.
If your application was denied, start by reviewing everything you submitted. Double-check your revenue figures, time in business, outstanding debt amounts and credit information to make sure there weren’t any errors or missing documents. Even small mistakes can affect an approval decision.
If everything appears accurate, contact the lender and ask for specific reasons your application was declined. Before applying again, take steps to address that weakness, such as paying down debt, increasing revenue, bringing on a co-signer or waiting until your business has more operating history.
Taking out a new business loan isn’t the only way to consolidate high-interest business debt. Consider these alternatives:
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