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Next Gen Econ > Business > Best Business Debt Consolidation Loans In 2024
Business

Best Business Debt Consolidation Loans In 2024

NGEC By NGEC Last updated: April 14, 2025 15 Min Read
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Key takeaways

  • The best business debt consolidation loans will offer you longer repayment terms or lower interest rates
  • You can use a variety of business loans to pay off current business debt, including an SBA loan, line of credit or short-term loan
  • Compare multiple debt consolidation lenders to find the best fit for your business

Business debt consolidation loans come in handy when you want to take your existing business debt and roll it into a new loan — allowing you to only have one payment. You can use many types of business loans to pay off business debt, including some SBA loans, which are backed by the U.S. government and offer competitive terms.

But you’ll want to compare different lenders to find the best loan offer possible. Ideally, the new loan will offer lower interest rates or longer repayment terms, both of which lower the monthly payment, to make consolidating your business debts worth it.

Look at the top lenders and types of loans that provide low interest rates, high loan amounts or long repayment terms.

Compare the best business debt consolidation loans

Lender Loan type Loan amounts Bankrate score
SBA SBA Up to $5.5 million 4.8
iBusiness Funding (formerly Funding Circle) Long-term loan $25,000 to $500,000 4.5
Fundible Business line of credit $1,000 to $500,000 4.7
Accion Opportunity Fund Term loan $5,000 to $250,000 4.1
Fora Financial Short-term loan $5,000 to $1.5 million 4.4
Backd Working capital loan $10,000 to $2 million 4.5
  • SBA loans are backed by the Small Business Administration and administered through SBA-approved lenders. These loans are known to offer high funding amounts of up to $5.5 million, depending on the type of SBA loan you choose. SBA loans are often competitive, offering favorable term lengths and interest rates. Some types of SBA loans to consider are:

    • 7(a) loan: The most popular type of SBA loan, you can use this loan for general purposes like operating expenses, equipment and refinancing debts.
    • Express loan: Used for working capital expenses, this loan offers funding up to $500,000 with faster approvals by the SBA than the normal approval process, which can take up to 90 days.
    • Microloans: SBA microloans are offered through nonprofits and other approved microlenders, providing loans up to $50,000 to underserved communities.

  • Lender requirements for SBA loans often vary. That said, if you have solid credit, such as a personal credit score of 670 or higher, and at least two years in business, you should be eligible for most SBA loans.If you have fair credit or less time in business, you may want to look for an online lender like Creditfy, which offers SBA loans to businesses with at least six months in business.

  • iBusiness Funding offers term loans for up to seven years, which is unique among online lenders — who often offer loan repayment terms of two years or less. You can borrow up to $500,000 to pay back your current loans and you won’t face upfront costs or have to pay prepayment penalties if you pay back the loan early. You’ll also receive funds in as little as two days, whereas many small business loans can take a week or more to apply for and receive funding. SBA loans are also available with loan terms of 10 to 25 years.

  • You can prequalify for an iBusiness Funding loan online with a soft credit pull. You will need a FICO score of at least 660 to be eligible. You’ll also likely need some type of collateral to back the loan, especially for its long-term loans.

  • Opening a Fundible business line of credit could be the right option if you want to pay off debts up to $250,000 with access to credit for the future. Fundible offers unusually long repayment terms for a line of credit — up to 120 months (although the website states it offers terms of up to 24 months). Fundible is also known to work with business owners who don’t have pristine credit. You may be eligible with a personal credit score of 500 or higher.

  • The best way to start a Fundible loan application is to call Fundible’s responsive customer service at 855-784-0008. Requirements to qualify include:

    • 500 personal credit score or higher
    • At least six months in business
    • At least $200,000 in annual revenue
    • The last three months of your business bank statements

  • Accion Opportunity Fund is a non-profit lender that offers loans to small business owners edged out of traditional financing, potentially including applicants with bad credit. It does so while providing low starting interest rates from 8.49 percent simple interest. Its single loan product, the Progress loan, offers flexible loan terms from 12 to 60 months. Accion Opportunity Fund only offers up to $250,000 in funding, which is common for an online lender but lower than the $500,000 or more that most traditional lenders provide.

  • You can apply for a loan straight from Accion’s website. Applicants must:

    • Have at least one year in business
    • Make at least $50,000 in annual sales
    • Own a minimum of 20% of the business
    • Be at least 18 or older to apply

  • Fora Financial offers loan amounts of up to $1.5 million for its short-term loans. Loans have up to 18-month terms, and you won’t have to provide collateral, though you still have to qualify based on your credit and revenue. This loan works well if you have a larger amount of debt but can repay it on a tight timeline. This loan is also revolving, allowing you to borrow more once you repay the initial amount. Fora Financial approves loans within four hours and you can receive funds within 24 hours.

  • Fora Financial takes a relaxed approach to business loan requirements, allowing you to get a loan with just:

    • At least 3 months in business
    • 570 FICO credit score or higher
    • $15,000 in gross monthly sales, though a spokesperson stated $144,000 per year

  • If you’re pressed for time when looking to consolidate your business loans, perhaps because payments are coming due, you can apply for a loan from Backd in three minutes or less and get funding in as little as 24 hours. This online lender offers working capital loans between $10,000 and $2 million, whereas most fintechs stop funding at $500,000. You can only get short loan terms up to 16 months, so you’ll need to be prepared to pay back your consolidated loan quickly with automatic daily, weekly or twice monthly payments. Also, understand that Backd charges factor rates, meaning the interest applies to the entire loan upfront.

  • Apply for a Backd loan online or by calling 737-256-7458. Backd has lenient but common requirements to be eligible for its business loans, including:

    • 600 minimum credit score
    • 1 year in business
    • $100,000 in annual revenue for its working capital loan
    • A business bank account

What is a business debt consolidation loan?

A business debt consolidation loan is any business loan used to pay off other business loans and debt, allowing you to make a single monthly payment. You may consider getting a debt consolidation loan for your business if the new loan offers a longer repayment term or lower interest rates than your current loans.

You may also want a consolidated loan to make it easier to track and repay your business debts using a single payment. But beware that the new business loan could cost you more than your current loans if the new interest rate is higher than what you currently have or the new loan comes with additional fees, such as a draw or origination fee.

You could also pay more if you choose a longer repayment term since you’ll be paying interest for a longer period. You might want to choose this strategy only if you need the lower payments. Before you consolidate your business debt, check to make sure none of your current loans charge a prepayment penalty if you pay it before the payment schedule ends. Use a business loan calculator to estimate your loan costs and determine whether the new loan offers the true benefits of longer or lower payments that you need.

What is the difference between business debt consolidation and refinancing?

A debt consolidation business loan is similar to refinancing in that you take out a new loan to pay off an initial business loan. The main difference is that refinancing involves taking out a new loan to pay off only one loan, while business debt consolidation involves taking out one loan to pay off several business loans — allowing you to have one monthly payment versus several.

Bankrate insight

You may consider refinancing a business loan when you can get more favorable interest rates or longer terms with a new business loan. It’s easier to find more favorable terms for one loan than it is if you were consolidating multiple business loans. Keep in mind that longer terms can help you lower monthly payments, but you may pay more in interest in the long run.

How to consolidate business debt

To get started with consolidating your business debt, follow these steps:

  1. Apply or prequalify for business loans from multiple lenders.
  2. Compare the loan offers, looking at the interest rates, total interest charged and repayment terms offered.
  3. Choose the business loan with the best offer from your preferred lender.
  4. Finalize the new business loan by filling out the application, getting approved and making your payment.
  5. Wait to receive the loan funds, which can take anywhere from 24 hours to a few weeks, depending on the lender.
  6. Use the loan funds to pay off your other business loans.
  7. Continue making the consolidated business loan payment until the loan is paid off.

Bottom line

You can use many types of business loans to pay off your current business loans and consolidate your debts. When applying for a loan, you simply need to state that the purpose of funding is to pay off business debts.

But, the best business debt consolidation loans will offer you lower interest rates or longer repayment terms than your current loans. These favorable terms will either lower your monthly payments or help you save money in interest. To be sure that you’re getting the best offer, you can prequalify with several business lenders to see what loan features they offer you.

Frequently asked questions

  • Business debt consolidation may be a good idea if you can get more favorable repayment terms or interest rates than you have with your current business loans. It may also be a good idea if you struggle to manage multiple business loan repayments. Business debt consolidation will help you by combining multiple loan payments into a single business loan payment.

  • Business debt consolidation could lower your credit score slightly since you’re applying for a new business loan and closing down old accounts. However, your business credit score should recover quickly if you make on-time payments with the new loan.
  • Yes, you can use a small business loan to consolidate previous business debts. The lender may ask you for the purpose of the loan funds during the application, so you’ll need to tell the lender that the purpose is to pay off debts.

Read the full article here

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