Best Business Debt Consolidation Loans
Best Business Debt Consolidation Loans
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Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of two years.
- Minimum credit score is higher than some other lenders.
iBusiness Funding - Online term loan
Best for Long-term loans
Pros
- Cash can be available within two business days.
- Competitive rates among online lenders.
- Terms up to seven years.
- iBusiness Funding also offers SBA loans up to $5 million.
Cons
- Charges an origination fee.
- Must be in business for a minimum of two years.
- Minimum credit score is higher than some other lenders.
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
Accion Opportunity Fund - Small Business Working Capital Loan
Best for Bad credit
Pros
- Loan amounts from $5,000 to $250,000.
- Customized loan terms.
- No prepayment penalty.
Cons
- Slower processing speed compared to online lenders.
- Not available in all U.S. states.
SBA 7(a) loan
Best for SBA loans
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for SBA loans
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Personal guarantee is required.
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Competitive interest rates.
- Bank of America ’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Strong eligibility criteria required.
- Can be slow to fund.
- Application cannot be completed online.
Bank of America Business Advantage Secured Term Loan
Best for Bank loans
Pros
- Competitive interest rates.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Strong eligibility criteria required.
- Can be slow to fund.
- Application cannot be completed online.
TAB Bank - Term loan
Best for Low-interest loans
Pros
- No prepayment penalty.
- Terms range from 36 to 60 months.
- Bank loan with online application process.
Cons
- Requires high minimum credit score.
- Origination fee and documentation fee charged on all loans.
- Requires business lien and personal guarantee.
TAB Bank - Term loan
Best for Low-interest loans
Pros
- No prepayment penalty.
- Terms range from 36 to 60 months.
- Bank loan with online application process.
Cons
- Requires high minimum credit score.
- Origination fee and documentation fee charged on all loans.
- Requires business lien and personal guarantee.
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Requires business lien and personal guarantee.
OnDeck - Online term loan
Best for Fast financing
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Requires business lien and personal guarantee.
- Bank loans. Loans from traditional banks typically offer the best rates and terms. Bank business loans can be slow to fund and difficult to qualify for, however, requiring several years in business and excellent credit. A secured business loan may be easier to qualify for because secured loans are backed by assets you use as collateral. This means that if you fail to repay the loan, the lender may repossess those assets to cover its losses.
- SBA loans. SBA loans are a great alternative to bank loans, 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 easier to qualify, but SBA lenders still usually require good credit and multiple years in business. 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. Although online business loans typically have flexible qualification requirements, expect higher interest rates and shorter repayment terms. These loans tend to fund much more quickly than bank and SBA loans.
- 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.
1. Determine how much you owe
2. Identify which loans to consolidate
3. Evaluate your qualifications
4. Compare options
- Interest rates.
- Repayment terms.
- Additional fees.
- Funding speed.
- Application process.
- Customer service.
5. 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
How to compare business debt consolidation loans
Instead of having to make multiple daily, weekly or monthly payments, a single loan can improve cash flow by requiring only one regularly-scheduled payment.
May be able to secure a lower interest rate and decrease interest costs on your debt.
Can result in a lower monthly payment due to a lower interest rate, smaller loan amount or longer loan term.
Longer repayment terms can result in more interest over the course of the loan.
If you can’t access better interest rates than what you’re paying now, a consolidation loan may not be right for your business.
You may have to pay additional fees when taking out a debt consolidation loan and your existing lenders may charge prepayment penalties for repaying early.