| Lender | Best for… | Maximum loan amount | Loan terms | Minimum interest rate | Time in business |
|---|---|---|---|---|---|
 | Business lines of credit | $250,000 | 6 or 12 months | 6.20% for the 26-week term | 24 months |
 | Borrowers with bad credit | $1,500,000 | 4 to 15 months | 1.10 factor rate | 6 months |
 | Low-revenue businesses | $500,000 | 6 to 84 months | 11.29% | 24 months |
 | Fast funding | $250,000 | Up to 24 months | 35.40%* | 12 months |
 | Larger loan amounts | $5,000,000 | Up to 120 months | Base plus 3.00% | 24 months |
 | Longer loan terms | $500,000 | Up to 144 months | 8.49% | 24 months |
| Loan amounts | Up to $250,000 |
| Starting interest rate | 6.20% for 26-week term |
| Loan terms | 6 or 12 months |
| Minimum credit score | 625 |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
Accepts borrowers with fair credit Provides flexible funding Offers a lower minimum interest rate | Has shorter repayment terms Has high minimum monthly revenue requirement Has a higher annual revenue requirement |
| Loan amounts | $5,000 - $1,500,000 |
| Starting factor rate | 1.10 |
| Loan terms | 4 to 15 months |
| Minimum credit score | 500 |
| Minimum time in business | 6 months |
| Pros | Cons |
|---|---|
Accepts borrowers with poor credit Has a short time in business requirement Offers large loan amounts | Only shares factor rate information Has a higher minimum annual revenue requirement Charges an origination fee |
| Loan amounts | $25,000 - $500,000 |
| Starting interest rate | 11.29% |
| Loan terms | 6 to 84 months |
| Minimum credit score | 660 |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
Has a low annual revenue requirement Offers longer loan terms Provides an account manager to help with the application process | Has a higher minimum credit score requirement Has a higher maximum interest rate Has a longer time in business requirement |
| Loan amounts | $5,000 - $250,000 |
| Starting interest rate | 35.40%* |
| Loan terms | Up to 24 months |
| Minimum credit score | 625 |
| Minimum time in business | 12 months |
| Pros | Cons |
|---|---|
Offers a low minimum borrowing amount Advertises same-day funding Has a shorter time in business requirement | Doesn’t disclose starting interest rate Requires daily or weekly repayment schedule Offers shorter loan terms |
| Loan amounts | Up to $5,000,000 |
| Starting interest rate | Base plus 3.00% |
| Loan terms | Up to 120 months |
| Minimum credit score | No minimum (680 recommended) |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
Offers larger loan amounts No minimum credit score requirement Provides longer loan terms | Imposes a longer time in business requirement Loans over $350,000 may require collateral Funding may take longer |
| Loan amounts | $20,000 - $500,000 |
| Starting interest rate | 8.49% |
| Loan terms | Up to 144 months |
| Minimum credit score | 660 |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
Longer loan terms available Larger loan amounts available No personal collateral requirement | Not upfront about their qualifying requirements online Higher annual revenue requirement |
BHG Money’s business debt consolidation loan terms extend up to 144 months, which is why it’s our best choice for borrowers who need more time to pay off their loans. Combined with its larger loan amounts and lack of a personal collateral requirement, this lender is set to be a solid pick for those who can qualify for its loans. However, you may have a hard time figuring out if you can qualify in the first place. BHG Money doesn’t publish all of its qualifying requirements online and some of them, like its $1 million annual revenue requirement, may be hard for some small business owners to meet.
A business debt consolidation loan replaces all your existing debt 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 consolidate your business debt using a business debt consolidation loan or balance transfer credit card. Many small business loans can be used for debt consolidation purposes, but some lenders don’t allow it. With that in mind, you’ll want to be sure to check in with your preferred lender about any use restrictions before you apply.
There’s no one-size-fits-all answer to whether business debt consolidation makes sense. In general, if you’re hoping to streamline your finances and you can find a loan with decent terms, it may make sense to consolidate business debt. However, consolidation doesn’t erase what you owe – it just allows you to restructure your debt into a more manageable payment. If you are close to paying off your existing debts or you can’t find a loan with favorable terms, consolidating may not be the best idea.
Any time you open or close a loan or credit card, it can temporarily ding your credit score. That said, the good news is that, 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.