If you’re looking to consolidate business debt, one option may be to get a consolidation loan to help you manage your payments and pay down debt. By combining multiple loans into one, you can simplify your debt obligations and free up cash flow for your business. The best business consolidation loans offer flexible qualification requirements, favorable rates and terms, and have excellent customer service.
I’ve compiled a list of some of the best debt consolidation for business options, detailed below.
- Lendio: Best for flexible qualification requirements
- Fora Financial: Best for various repayment options
- BHG Financial: Best for well-established businesses
- Clarify Capital: Best for multiple financing options
- Bluevine: Best for revolving credit needs
Best business debt consolidation loans at a glance
Max. loan amount | Est. starting APR | Max. repayment term | Rqd. credit score | |
|---|---|---|---|---|
 | $2 million | 8.49% | 10 years | 600 |
 | $1.5 million | Factor rates from 1.1-1.9x | Varies | 570 |
 | $500,000 | Varies | 12 years | 755 |
 | $5 million | Varies | 2 years | 500 |
 | $250,000 | 7.8% | 12 months | 625 |
Lendio: Best overall for flexible qualification requirements
| |
Rates and terms | |
Estimated starting APR | 8.49% |
Maximum loan amount | $5,000 to $2 million |
Repayment term | Up to 10 years |
Repayment schedule | Monthly |
Funding speed | As fast as same-day |
Loan type | Business term loan |
Qualifications | |
Credit score | 600 |
Time in business | 12 months |
Annual revenue | $96,000 |
Why I like Lendio
Lendio is a broker with a wide variety of financing solutions available via its network of over 75 partnering lenders. With a single application, you can review several loan options across various providers. I chose it for its flexible rates, terms, and qualifications, along with its ability to pair you with a lender that meets your specific business needs.
It’s useful if you’re looking for multiple options for debt consolidation, especially if you have less-than-ideal credit or resources. Its partnering lenders can work with a variety of credit scores, time in business, and annual revenue. Its term loan offerings may have stricter requirements than some of its other loan types, but it can be a worthwhile option if you’re looking to consolidate business debt and want a lump sum payment to cover it all.
Lendio’s application process is simple and has no impact on your credit score. It takes as little as 15 minutes, and once completed, you’ll be contacted by a lending specialist to help you navigate the process and review your financing needs.
Visit the Lendio website to learn more or submit an application.
Fora Financial: Best for various repayment options
| |
Rates and terms | |
Estimated starting APR | Factor rates from 1.1 to 1.9x |
Maximum loan amount | Up to $1.5 million |
Repayment term | Varies |
Repayment schedule | Monthly |
Funding speed | 24 to 48 hours |
Loan type | Term loan |
Qualifications | |
Credit score | 570+ |
Time in business | 6 months |
Annual revenue | $240,000 |
Why I like Fora Financial
Fora Financial makes the list because it offers term loans with repayment terms ranging from short to long. These loans can be used to assist you with refinancing existing business debts, among other business uses. You can use its term loan to consolidate high-interest debts and potentially secure an overall lower interest rate.
As such, your business can improve its overall financial position and free up cash flow by reducing monthly debt obligations, which can also help build business credit. In addition to term loans, Fora Financial offers other loan types that can be applicable to your consolidation efforts, including revenue advances and SBA loans.
To apply, you can visit the Fora Financial website. There, fill out the simple application and provide your financing request details and applicable business information. The application is obligation-free and won’t impact your credit score. Notably, you can receive a lending decision in as few as 4 hours.
BHG Financial: Best for well-established businesses
 | |
Rates and terms | |
Estimated starting APR | Varies |
Maximum loan amount | $500,000 |
Repayment term | Up to 12 years |
Repayment schedule | Monthly |
Funding speed | As few as 3 days |
Loan type | Term loan |
Qualifications | |
Credit score | 755 |
Time in business | 13 years |
Annual revenue | $153,000 |
Why I like BHG Financial
BHG Financial can be a great debt-consolidation option if your business is well-established in the sense that it has ample revenue and has been operating for some time. The lender has stricter qualification requirements than other providers in this guide; however, it has decades of experience with billions of loan funds issued.
Whether it be providing funds for new business opportunities, expansion, or debt consolidation, it has customized loans designed for the unique needs of your business. Additionally, it is well-known for customer service and has an A+ BBB rating.
You can get a no-obligation approval decision within as little as 24 hours, with no impact on your credit score. BHG Financial’s application process has no fee and requires minimal documentation to get started. If approved, you’ll be provided with quick access to funds, with loan experts available around your schedule.
To learn more or apply, visit the BHG Financial website.
Clarify Capital: Best for multiple financing options
 | |
Rates and terms | |
Estimated starting APR | Varies |
Maximum loan amount | Up to $5 million |
Repayment term | 2 years |
Repayment schedule | Monthly |
Funding speed | 24 to 48 hours |
Loan type | Short-term loan |
Qualifications | |
Credit score | 500 |
Time in business | 6 months |
Annual revenue | $120,000 |
Why I like Clarify Capital
Clarify Capital is a loan broker. Similar to Lendio, it has over 75 partnering lenders in its network. Due to its wide range of partners, it offers numerous loan types that are applicable for a wide variety of qualifications and business needs. I chose it for its various financing options so that you can compare multiple offers at once.
Only a single application is required, and upon review, you can be paired with lenders who meet your need for financing. The great thing about working with a broker is that it is typically able to match you with flexible rates and terms based on your qualifications, so if you have less than ideal credit, this can be a great way to seek financing. If you’re looking to consolidate business debts, Clarify Capital has loan offerings other than its term loans, including lines of credit, SBA loans, and merchant cash advances.
Notably, this broker is known for its high level of service. In fact, it has a rating of 4.9 on Trustpilot. That said, you can speak with one of its dedicated advisors throughout the application and approval process, where they will guide you every step of the way. The application is simple and only takes a few minutes to complete.
To learn more or apply, visit the Clarify Capital website.
Bluevine: Best for revolving credit needs
 | |
Rates and terms | |
Estimated starting APR | 7.8% |
Maximum loan amount | $250,000 |
Repayment term | 26 weeks or 12 months |
Repayment schedule | Weekly or monthly |
Funding speed | As fast as 24 hours |
Loan type | Line of credit |
Qualifications | |
Credit score | 625 |
Time in business | 12 months |
Annual revenue | $120,000 |
Why I like Bluevine
Bluevine offers a line of credit that has favorable rates and flexible qualification requirements applicable to a wide variety of businesses. Not only does it provide quick access to funds, but it can also be used for various business expenses, including consolidating debt. If you are looking to pay off multiple debts at once and consolidate them with a single payment, a line of credit might fit the bill — as long as you’re comfortable with variable rates.
Notably, Bluevine also offers business checking accounts. You can link it with its line of credit product and have the ability to have access to funds instantaneously when making a draw request. We also recommend Bleuvine in our roundup of the best working capital loans due to its level of flexibility.
If you decide to move forward with an application, you can visit the Bluevine website and provide your information. The overall process is simple and can be completed in just a few minutes.
Related resources:
My methodology
I reviewed the best business consolidation loans using the following criteria:
- Interest rates and estimated APRs
- Maximum financing amounts
- Repayment terms and repayment schedules
- Ease of application
- Funding speed
- Flexibility of qualification requirements (such as credit score, revenue, and time in business)
- Down payment requirements
- Paperwork requirements for approval and funding
- Customer ratings and reviews
How to choose a business debt consolidation loan provider
There are a few common factors you should keep in mind before selecting a lender.
- Consider your business financing needs. Depending on your specific debt consolidation needs, consider what type of financing is best suited for your goals. This could be an SBA loan, a line of credit, or a working capital loan. The best option for you will depend on your budget and long-term debt management goals.
- Review the lender qualification requirements. A lender will use varying qualification requirements to determine your eligibility. Common factors like credit score, time in business, and annual revenue are considered when reviewing your application. For the best odds of approval, ensure you meet the minimum qualifications before filling out an application.
- Compare loan costs and terms. It’s important to work with a lender that understands your situation and can help guide you through the lending process altogether. You should review all associated loan costs, such as repayment terms and any potential fees. Shopping around for rates and terms across lenders can help you find one best suited for you before signing the dotted line.
Alternatives to business debt consolidation loans
In the event you don’t qualify for a business loan or generally want to explore all of your applicable financing options for debt consolidation, here are some alternatives to consider.
- Rollover for Business Startups (ROBS): You can use your retirement savings to fund your business tax- and penalty-free by utilizing a ROBS. You’ll typically need an investment of $50,000 or more to get started, and for other details, see our ROBS ultimate guide.
- Friends and family loan: For a less formal method of getting financing, you can approach friends and family who might be willing to provide funds for business purposes. You’ll still need to apply an applicable federal rate, however, but this can be a flexible financing option that has less strict qualification requirements than traditional business loans. Our guide on raising money from family and friends to fund your business will walk you through the process.
- Crowdfunding: This allows you to raise funds from a variety of interested investors, without entering into debt. You can promote your campaign via a public platform in which, in return for funding, you can offer debt-, equity-, donations-, or rewards-based incentives. For guidance, see our article on how to crowdfund a business.
Frequently asked questions (FAQs)
It can be if you’re looking to streamline your debt payments and make managing your finances easier. It may be able to help you free up cash flow and save money if you refinance with a lower interest rate than your current debt obligations.
Disadvantages to debt consolidation can include longer repayment terms, potential fees, collateral or personal guarantee requirements, and the potential for a higher interest rate. Generally, you should shop around for a lender and review these details before entering into an agreement.
It varies depending on your intended use. A term loan can provide you with the ability to refinance your existing debts with a single lump sum and allow you to have the same monthly payment amount. If you need something more flexible, a line of credit could allow you to pay off various debts as you see fit. Just be mindful of rates and fees with this method.
It depends. In truth, it can have both potential negative and positive impacts on your credit. Keep an eye out for your total credit utilization, missed payments, new account openings, and hard credit pulls, as these all can potentially negatively impact your credit. That said, if your debts are properly managed, you may see positives that increase your overall score and may allow you to get favorable rates and terms when seeking financing in the future.
