Up to $250,000
7.80%
3 to 12 months
If you need flexible funding in addition to funds for debt consolidation, a business line of credit may be a better choice than a term loan since it allows you to borrow money as needed. In particular, we chose Bluevine as our best line of credit pick because it accepts borrowers with fair credit scores and boasts a low minimum interest rate.
That said, you’ll be subject to relatively short repayment terms and, if your business is newer, you may be asked to make weekly payments on what you’ve borrowed. Plus, Bluevine is not available in all states. Small business owners in North Dakota, South Dakota, Nevada and any U.S. territories are not eligible for Bluevine funding.
$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. In addition, you’ll have the opportunity to be approved for up to $1,500,000 in funds, and you’ll only need to be able 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 3.00% origination fee.
$25,000 - $500,000
7.49%
6 to 84 months
iBusiness Funding is our choice for the best lender for low-revenue businesses because its annual revenue requirement is only $50,0000, which is much lower than some of its competitors. Plus, its loan terms range up to 84 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 for those looking for fast funding because you may be able to receive your financing the very same day your application is approved. Its shorter time in business requirement and lower minimum loan amount of just $5,000 may also be of benefit.
Yet, 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) guarantees loans for lenders like Live Oak Bank, which allows these lenders to provide financing to small business owners who can’t obtain funds through traditional methods. In particular, the SBA 7(a) loan program allows for debt refinancing. As an SBA-preferred lender, Live Oak Bank can help you access loans up to $5,000,000 at a quicker turnaround time than other financial institutions.
However, receiving funding for an SBA loan can still take a lot longer than with some other lenders, especially 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, which can make it hard to determine if you’ll qualify for a loan.
$20,000 - $500,000
10.49%
Up to 144 months
BHG Financial’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 Financial 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 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 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.
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, the good news is, 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.
