Best Business Debt Consolidation Loans in 2026
Streamline multiple business debt payments into one with lenders like Bluevine, which stands out for flexible credit lines, or Fora Financial, our pick for bad credit borrowers.
- Before consolidating, check for prepayment penalties on existing loans. They can offset some of your savings.
- The best consolidation loan depends on your situation. Bluevine is best for flexible credit lines, while OnDeck is the fastest option for newer businesses.
- Fora Financial accepts credit scores as low as 570, making it the most accessible lender on this list for borrowers with bad credit.
- SBA 7(a) loans through Live Oak Bank offer the largest amounts (up to $5M) and longest terms (up to 25 years) but can take weeks to fund.
Best business debt consolidation loans, compared
| Lender | Best for | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|---|
|
Business lines of credit | 7.80% |
$1k – $250k |
Up to 12 months | 12 months | |
|
Borrowers with bad credit | 13.00% |
$5k – $1.5M |
4 to 18 months | 6 months | |
|
Low-revenue businesses | 22.45% (APR) |
$25k – $500k |
6 to 60 months | 24 months | |
|
Fast funding | 35.26% (APR) |
$5k – $400k |
Up to 24 months | 12 months | |
|
SBA 7(a) loans | 9.50% (variable interest rate) | Up to $5M | Up to 300 months | 24 months |
| Lender |
|
|
|
|
|
|---|---|---|---|---|---|
| Best for | Business lines of credit | Borrowers with bad credit | Low-revenue businesses | Fast funding | SBA 7(a) loans |
| Starting rate | 7.80% | 13.00% | 22.45% (APR) | 35.26% (APR) | 9.50% (variable interest rate) |
| Amount | $1k – $250k | $5k – $1.5M | $25k – $500k | $5k – $400k | Up to $5M |
| Term | Up to 12 months | 4 to 18 months | 6 to 60 months | Up to 24 months | Up to 300 months |
| Time in business | 12 months | 6 months | 24 months | 12 months | 24 months |
Read more about how we made our picks for best business debt consolidation loans.
Best for: Business lines of credit – Bluevine
- Starting rate
- 7.80%
- Accepts borrowers with fair credit
- Flexible line of credit — draw funds as needed, not all at once
- Lowest starting rate among our picks at Not specified
- Shortest repayment terms on this list (up to 12 months)
- Not available in Nevada, North Dakota, South Dakota or U.S. territories
- Newer businesses may be required to make weekly payments
Bluevine is our pick for businesses that want consolidation flexibility. Instead of taking a lump sum, draw only what you need and pay interest only on the amount you use. Bluevine accepts fair credit and has a relatively low starting rate, making it an affordable option for a business line of credit.
However, repayment terms are shorter than many competitors, maxing out at 12 months. Newer businesses may also need to make weekly payments, and Bluevine isn’t available in Nevada, North Dakota, South Dakota or U.S. territories.
Check out LendingTree’s full Bluevine review.
- Minimum credit score: 625
- Minimum annual revenue: $120,000
- Minimum time in business:: 12 months
Best for: Borrowers with bad credit – Fora Financial
- Starting rate
- 13.00%
Fora Financial’s minimum rate is a 1.13 factor rate. This means you’d repay 13.00% (plus any additional fees) on top of the amount borrowed.
- One of the lowest credit score requirements on this list
- Qualifies newer businesses — only 6 months required
- Among the highest loan amounts available ($1,500,000)
- May require daily repayments
- $240,000 annual revenue requirement is high relative to competitors
For business owners with bad credit, Fora Financial is the most accessible lender on this list. It accepts credit scores as low as 570, offers funding up to $1,500,000 and only requires six months in business to qualify.
Costs can add up quickly, though. Fora Financial uses a factor rate instead of a traditional annual percentage rate (APR), which can make comparing offers more difficult. Daily repayments and a one-time origination fee can also increase the overall borrowing cost.
- Check out LendingTree’s full Fora Financial review.
- Minimum credit score: 570
- Minimum annual revenue: $240,000
- Minimum time in business: 6 months
Best for: Low-revenue businesses – iBusiness Funding
- Starting rate
- 22.45%
iBusiness has a 7.49% interest rate, 22.45% APR
iBusiness Funding offers traditional term loans up to $500,000. SBA loans and USDA loans may offer higher amounts.
- Lowest annual revenue requirement on this list ($50,000)
- Same-day approval possible
- Among the longest repayment terms available in this list (up to 60 months)
- 24 months time in business requirement excludes newer businesses
- Higher minimum credit score requirement (640)
At just $50,000, iBusiness Funding has the lowest annual revenue requirement on this list, making it a strong fit for businesses that are still scaling. Repayment terms stretch up to 60 months, giving you more breathing room than most online lenders offer.
The biggest hurdle is time in business. You’ll need at least 24 months in operation to qualify, which may rule out newer startups. iBusiness Funding also charges a steep late fee equal to 5% of the missed payment.
Check out LendingTree’s full iBusiness Funding business loan review.
- Minimum credit score: 640
- Minimum annual revenue: $50,000
- Minimum time in business: 24 months
Best for: Fast funding – OnDeck
- Starting rate
- 35.26%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
- Same-day funding available
- Borrow as little as $5,000
- One of the shorter time in business requirements (12 months)
- Highest starting APR on this list (35.26%)
- Daily or weekly repayment required
OnDeck’s main draw is speed. Same-day funding is available if you have an established account, and new borrowers can get it within two days. The $5,000 minimum loan amount makes it accessible for businesses that need a smaller loan quickly. The 12 months time in business requirement also opens the door for newer businesses.
It comes at a price, though. OnDeck carries the highest starting APR on this list. Daily or weekly payments plus an origination fee add to the overall cost.
Check out LendingTree’s full OnDeck review.
- Minimum credit score: 625
- Minimum annual revenue: $100,000
- Minimum time in business: 12 months
Best for: SBA loans – Live Oak Bank
- Starting rate
- 9.50%
Starting at 9.50% variable. Some borrowers may qualify for lower rates. Based on the current prime rate of 6.75% + a rate maximum set by the SBA.
- SBA-preferred lender, which can shorten your loan processing time
- Longest repayment terms on this list
- Highest loan amounts available (up to $5,000,000)
- Eligibility criteria not publicly disclosed
- SBA loans typically take weeks to fund, vs. same day for some alternatives
Live Oak Bank is an SBA-preferred lender, meaning it can process SBA 7(a) loans faster than many traditional financial institutions. Because SBA loans are partially backed by the federal government, they can also be easier to qualify for than conventional business loans. With loan amounts up to $5,000,000 and repayment terms as long as 300 months, Live Oak is the strongest option on this list for large, long-term consolidation needs.
The downside is speed. SBA loans can take weeks to fund, especially compared to online lenders. Live Oak also doesn’t publicly disclose many of its qualification requirements, so it may be worth contacting the lender before starting an application.
- Minimum credit score: 650
- Minimum time in business: 24 months
- Minimum annual revenue: Not specified
What is a business debt consolidation loan?
A business debt consolidation loan lets you replace multiple existing business debts — think merchant cash advances, business credit cards or short-term loans — with a single new loan with one monthly payment. The goal is to simplify repayment and, ideally, reduce the total cost of your debt by securing a lower interest rate or longer repayment term.
Here’s how it works in practice: Say your business is carrying three $5,000 loans with 10-year terms and APRs of 25%, 30% and 35%.
Monthly Payment:
25% APR = $113.75
30% APR = $131.81
35% APR = $150.62
Total: $396.18
Consolidating that debt into one $15,000 loan with a 25% APR leaves you with a monthly payment of $341.24. That’s a savings of $54.94 a month.
Types of business debt consolidation
There are two main ways to consolidate business debt. The right choice depends on what kind of debt you’re carrying and how much flexibility you need.
Business debt consolidation loans
Best for: Businesses consolidating a mix of debt types.
A business term loan is the most common way to consolidate business debt. You borrow a lump sum, use it to pay off existing debts and repay the new loan in fixed installments. These loans are available through traditional banks, credit unions and online lenders. While some are marketed specifically for debt consolidation, most general-purpose small business loans can be used for this purpose too.
Balance transfer business credit cards
Best for: Businesses with manageable credit card debt and a realistic plan to pay it down during the 0% APR period.
If your debt is primarily on business credit cards, a balance transfer card lets you move those balances onto a single card, often with an introductory 0% APR period. That window can give you breathing room to pay down the principal without accruing interest.
You’ll have to pay an upfront balance transfer fee, typically 2% to 5% of the amount you’re transferring. The biggest risk, however, is that once the introductory period ends, you’ll likely face a higher interest rate on whatever you haven’t paid off. This option only makes sense if you can realistically pay down the balance before that happens.
These terms are often used interchangeably, but they’re not the same. Consolidation combines multiple debts into one new loan. Refinancing business debt replaces a single existing loan with a new one that has better terms. If you’re only dealing with one loan, refinancing is likely the better move.
When to consider business debt consolidation
Business debt consolidation makes the most sense when multiple payments are straining your cash flow or when you’re carrying high-interest debt that’s slowing growth. LendingTree research found that, for personal loans, consolidating debt into a lower-rate loan can save borrowers up to $1,750 in interest on a $10,000 balance. While business loan amounts and rates differ, the same principle holds: Moving high-interest debt to a lower rate reduces total repayment costs.
Consider consolidation if any of these apply to your business:
- You’re juggling multiple payments. Managing several due dates across lenders increases the risk of missed payments and makes cash flow harder to predict.
- You’re carrying high-interest debt. If your current rates are significantly above what a consolidation loan would offer, the interest savings can be substantial.
- Cash flow is tight. Consolidating into a longer-term loan can lower your monthly payment and free up working capital.
- Your credit score has improved. A stronger credit profile since you took out your original loans may now qualify you for better rates.
- You’re preparing for growth. Simplifying your debt structure before taking on new financing makes your business a stronger candidate for future loans.
Pros and cons of business debt consolidation loans
Pros
- One monthly payment replaces multiple due dates, reducing the risk of missed payments.
- A lower interest rate can reduce total repayment costs and free up monthly cash flow.
- On-time payments on the new loan can strengthen your credit profile over time.
Cons
- Your total debt balance doesn’t change, only the structure of repayment.
- Applying for a new loan triggers a hard credit inquiry, which can temporarily lower your score
- Origination fees on the new loan and prepayment penalties on existing loans can offset some of your savings.
How to compare business debt consolidation loans
Not all business debt consolidation loans are created equal. Here’s what to compare:
- Interest rate or factor rate: Some lenders use 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: Watch for origination fees on term loans and draw fees or monthly maintenance fees on lines of credit. These can significantly affect the total cost of borrowing.
- Loan terms: As a rule, choose the shortest term at which you can comfortably afford the monthly payment. Longer terms lower your monthly payment but increase total interest paid over the life of the loan.
- Funding time: Some lenders offer quick business loans and can have the money in your account as soon as the same business day, while others may take a few days. Decide how soon you need the money before choosing a lender.
- Collateral or personal guarantee: Some loans are secured by an asset, which can help you get a better interest rate. But if you default on the loan, you risk losing that asset. Weigh whether that risk is worth it when comparing lenders.
How to consolidate business debt
Ready to move forward? Here’s the step-by-step process:
1. Find out how much debt you have
List every existing debt obligation including outstanding balance, interest rate, repayment terms and any prepayment penalties. This tells you which debts are worth consolidating and how much you’ll need to borrow.
2. Determine your eligibility
Understanding business loan requirements before you apply can save time. Lenders typically evaluate credit score, time in business, annual revenue and collateral. Your credit score carries the most weight. It affects both whether you qualify and the rate you’ll receive.
Use LendingTree’s business loan calculator to estimate how much you can borrow.
3. Gather your supporting documentation
Most lenders will ask for some combination of:
- Business plan
- Business licenses
- Tax returns
- Financial statements
- Governing documents (articles of incorporation or bylaws)
4. Compare loan options
Get offers from at least a few lenders before deciding. Provide the same information to each lender so you can make a direct comparison on rate, fees and terms.
5. Apply for a loan
Online lenders typically offer a simple online application. Banks and credit unions may require an in-person visit. If you need help, your local Small Business Development Center (SBDC) can assist with the application process.
6. Close on the loan
Review your loan agreement carefully before signing. Pay particular attention to the rate, repayment schedule and any prepayment penalties.
For qualified users, LendingTree’s small business concierge service connects you with an expert who can help you compare loan options and choose the best fit for your business needs.
This individualized approach helped LendingTree’s small business concierge service connect more than 5,000 borrowers with over $300 million of loans last year.
How we chose the best business debt consolidation loans
We reviewed more than 15 lenders to determine the overall best five loans to consolidate business debt. To make our list, lenders must meet the following criteria:
- Minimum time in business of six 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 570.
- 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.
Read more about LendingTree’s editorial guidelines and standards.
Frequently asked questions
Requirements vary — Fora Financial accepts scores as low as 570, while Live Oak Bank‘s SBA loans typically require at least 650. Keep in mind that your score affects more than just eligibility, borrowers with higher scores generally qualify for lower rates and more favorable terms.
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 like Live Oak Bank to apply for this type of business debt consolidation loan.
Most types of business debt are eligible, including business term loans, merchant cash advances, business credit cards and short-term loans.
Applying for a new loan triggers a hard credit inquiry, which can temporarily lower your score. However, consolidating multiple debts into one loan can improve your credit utilization, and making on-time payments on the new loan builds your credit profile over time.