Best Business Debt Consolidation Loans in 2024

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By Tara Mastroeni | Edited by Kurt Adams and Pearly Huang | Updated on October 20, 2023

Business debt consolidation lenders at a glance

Bluevine: Best business debt consolidation option for business lines of credit

Loan amountsUp to $250,000
Starting interest rate6.20% for 26-week term
Loan terms6 or 12 months
Minimum credit score625
Minimum time in business24 months

 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

Fora Financial: Best business debt consolidation option for borrowers with bad credit

Loan amounts$5,000 - $1,500,000
Starting factor rate1.10
Loan terms4 to 18 months
Minimum credit score570
Minimum time in business6 months

 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

Funding Circle: Best business debt consolidation option for low-revenue businesses

Loan amounts$25,000 - $500,000
Starting interest rate15.22%
Loan terms6 to 84 months
Minimum credit score660
Minimum time in business24 months

 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

OnDeck: Best business debt consolidation option for fast funding

Loan amounts$5,000 - $250,000
Starting interest rate27.30%*
Loan termsUp to 24 months
Minimum credit score625
Minimum time in business12 months
*This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.


 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

SBA 7(a) Loan: Best business debt consolidation option for large loan amounts

Loan amountsUp to $5,000,000
Starting interest rateBase plus 3.00%
Loan termsUp to 120 months
Minimum credit scoreNo minimum (680 recommended)
Minimum time in business24 months

 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

BHG Money: Best business debt consolidation option for longer loan terms

Loan amounts$20,000 - $500,000
Starting interest rate8.49%
Loan termsUp to 144 months
Minimum credit score660
Minimum time in business24 months

 Longer loan terms available

 Larger loan amounts available

 No personal collateral requirement

 Not upfront about their qualifying requirements online

 Higher annual revenue requirement

What is a business debt consolidation loan?

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.

Types of business debt consolidation financing

Here’s a few ways you can consolidate your business debt:

  • Business debt consolidation loans: Business debt consolidation most traditionally comes in the form of a small business term loan. These loans can come from traditional financial institutions, like banks and credit unions, or online lenders. Each of these providers may offer a loan specific to debt consolidation or a small business loan that can be used for a variety of purposes, including consolidating debt.
  • Balance transfer business credit cards: Business balance transfer credit cards allow you to consolidate business debt from multiple credit cards in one place. Most also come with an introductory 0% APR period, which can help you save money on interest charges while you pay down your balance.

Business debt consolidation vs. refinancing a business loan

It’s important to note that business debt consolidation is different from refinancing business debt. Refinancing allows you to replace an existing loan with a new one that has better terms, but it doesn’t give you the opportunity to combine multiple sources of debt into one.

How to consolidate business debt

To consolidate business debt, you would take out a new business loan and pay off your existing debts. This could include business credit card debt as well as debt from a business term loan. You’ll be left with one loan with one monthly payment, ideally with more favorable terms than the original ones. Here’s how it works:

1. Find out how much debt you have

Before you can consolidate business debt, you need to determine how much you owe. Start by gathering a list of any existing debt obligations for your business. Be sure to include the total outstanding balance, repayment terms, interest rate and any prepayment penalties.

Review this information to determine which debts are good candidates for debt consolidation. Then, add up those balances to determine the total amount that you want to consolidate. Once you have this information in hand, you’ll have a better idea of how much you need to borrow.

2. Determine your eligibility

Each lender will set their own business loan requirements, most of which can typically be found on their websites. However, in general, the following metrics will play a role in loan eligibility: credit score, time in business, annual revenue, and any collateral or personal guarantee.

Often, your business and personal credit score will have the biggest impact since it plays a role in both your loan eligibility and the interest rate you’re given. Some lenders on this list will accept scores as low as 500, but in general, the most affordable rates are given to the borrowers with the highest credit scores.

 If you want a better idea of how much you could be approved for in a loan, use our business loan calculator to get started.

3. Gather your supporting documentation

Next, your lender will likely want to see some supporting documentation along with your loan application. Here’s an overview of what you may need to provide:

  • Business plan: Your business plan gives the lender more information about your unique business model.
  • Business licenses: Providing copies of your business licenses shows that you’re compliant with local government regulations.
  • Tax returns: Showing your personal and business tax returns will give the lender a better sense of your net profit.
  • Financial statements: Recent financial statements can help give the lender a better picture of your business’s overall financial health.
  • Governing documents: Your governing documents, such as articles of incorporation or bylaws, will give the lender a sense of how your business is run.

4. Compare loan options

After you’ve gathered all your information, the next step is to shop around for a loan. (More on that below.) Shopping around can help you save money on interest charges and help ensure that you select the best loan terms for you.

As a rule of thumb, you’ll want to gather offers from a handful of lenders before making your final decision. Be sure to provide each lender with the same information so that you can make an apples-to-apples comparison once you have the offers in hand.

5. Apply for a loan

Once you’ve landed on the loan offer that works best for you, it’s time to officially apply for the loan. Online lenders will usually allow you to apply via a simple online application form. However, more traditional financial institutions, like banks or credit unions, may require you to visit a branch in person.

Some lenders may offer access to an account representative who can help you pull your loan application together. But, if your lender doesn’t, consider bringing your application to your local Small Business Development Center (SBDC) for assistance.

6. Close on the loan

As soon as your application has been approved, you’ll receive a copy of your loan agreement. Be sure to read over this document carefully so that you understand all the terms and conditions clearly before signing on the dotted line.

Don’t be afraid to reach out to your lender if you have questions about any loan terms.

How to compare business debt consolidation loans

While you’re shopping around for the best loan to consolidate your business debt, here are a few key metrics to keep in mind:

  • Interest rate or factor rate: Some lenders may charge a simple interest rate while others use a factor rate. In either case, you’ll want to compare how much you’ll pay in interest charges over the life of the loan.
  • Fees: On a term loan, some lenders may charge an origination fee. In contrast, with a business line of credit, you may face a draw fee or monthly maintenance fee. Compare fees to make sure you’re getting the biggest bang for your buck.
  • Loan terms: Longer loan terms typically mean lower monthly payments, but you’ll likely pay more in total interest charges. Shorter loan terms, on the other hand, can help you save on interest, but your monthly payment will probably be higher. As a general rule, it makes sense to pick the shortest loan term where you can comfortably afford the monthly payment.
  • Funding time: Some lenders offer quick business loans and can have the funds in your account as soon as the same business day. Others may take a few days after your application has been accepted to release the funds. Decide how soon you need the funds before making your decision.
  • Collateral or personal guarantee: Some loans are secured by an asset, which can help you secure a better interest rate. But, it also puts the asset at risk of being repossessed if you default on the loan. Be sure to weigh whether that risk is worth it when comparing lenders.

Pros and cons of business debt consolidation loans


 Consolidation streamlines multiple debt payments into one.

 Your new loan may come with a better business loan interest rate or loan terms.

 Keeping up with your payments can help improve your credit score.

 Consolidating won’t erase your debts.

 Taking out a new loan can temporarily ding your credit score.

 Opening up a new loan may come with additional upfront fees.

How we chose the best business debt consolidation loans

We reviewed more than 15 lenders to determine the overall best six loans to consolidate business debt. To make our list, lenders must meet the following criteria:

  • Minimum time in business of 6 months: Most lenders require at least 24 months in business before granting loan approval, but some of our lenders have time in business requirements as short as just six months.
  • Minimum credit score of 500: If you’re looking for a bad credit business loan, some of our lenders accept personal credit scores as low as 500.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

Best business debt consolidation loans summary

Frequently asked questions

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.