Up to $250,000
7.80%
Up to 12 months
If you need flexible funding in addition to money for debt consolidation, consider using a business line of credit, which allows you to borrow money as needed. Bluevine is our pick for best business line of credit because it accepts borrowers with fair credit scores and boasts a low minimum interest rate.
That said, Bluevine has relatively short repayment terms and you may be asked to make weekly payments if your business is on the new side. Plus, Bluevine is not available in North Dakota, South Dakota, Nevada or any U.S. territories.
$5,000 - $1,500,000
1.13
4 to 18 months
Fora Financial is our top pick for borrowers who need bad credit business loans because the lender accepts credit scores as low as 570. You could be approved for up to $1,500,000, and you’ll only need to show a minimum of six months in business to qualify for a loan.
Still, Fora Financial’s annual revenue requirement is fairly steep at $240,000 per year and the company charges a 2.50% origination fee.
$25,000 - $500,000
7.49%
6 to 60 months
iBusiness Funding is our choice for the best lender for low-revenue businesses because its annual revenue requirement is only $50,000, which is much lower than some of its competitors. Plus, iBusiness Funding offers repayment terms of up to 60 months, which makes it a solid option for a long-term business loan.
However, you’ll have to put up collateral on the loan, such as a personal guarantee and a UCC filing against your business assets. You also may not be eligible if you run a startup business, as this lender has a time in business requirement of at least two years.
$5,000 - $250,000
31.30% Minimum APR offered to at least 5% of customers (not the lowest rate offered)
Up to 24 months
OnDeck is the standout choice if you’re looking for fast funding because you may be able to get your money the same day your application is approved. OnDeck’s short time in business requirement and minimum loan amount of $5,000 make it a good fit for newer businesses in need of a small, quick cash injection.
Since OnDeck only offers a short-term business loan, you’ll have to deal with some limitations. For one, repayment terms only go up to 24 months. For another, you’ll have to plan for daily or weekly payments.
Up to $5,000,000
10.50% variable, 12.50% fixed Some borrowers may qualify for lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
Up to 120 months
The U.S. Small Business Administration (SBA) backs loans for lenders like Live Oak Bank. This guarantee allows Live Oak Bank to offer funding to small business owners who might not qualify for traditional loans. As an SBA-preferred lender, Live Oak Bank can help you access loans up to $5 million at a quicker turnaround time than other financial institutions. In particular, the SBA 7(a) loan program allows for debt refinancing.
However, getting your SBA loan money can still take a lot longer than getting a business loan from alternative lenders. What’s more, the SBA allows each lender to set its own eligibility criteria and Live Oak Bank is not very upfront about its benchmarks. This can make it hard to determine if you’ll qualify for a loan.
A business debt consolidation loan helps you streamline all your existing business debts into one loan with one monthly payment.
Consolidating business debt could help your business save money and free up cash flow. You could potentially lower your interest rate or get more manageable payments.
Yes, it’s possible to take out a debt consolidation loan for your business. In fact, many small business loans can be used for debt consolidation, but some lenders don’t allow it. Check with your preferred lender about any use restrictions before you apply.
Yes, the SBA offers the option to consolidate debt through the SBA 7(a) loan program. However, the SBA doesn’t fund loans directly, so you’ll need to work with an approved lender to apply for this type of business debt consolidation loan.
Any time you open or close a loan or credit card, it can temporarily lower your credit score. That said, as long as you continually make your payments on time, taking out a consolidation loan can actually help you build your credit score over time.
