Best business debt consolidation loans

SBA loans are backed by the Small Business Administration and administered through SBA-approved lenders. These loans are known to offer high funding amounts of up to $5.5 million, depending on the type of SBA loan you choose. SBA loans are often competitive, offering favorable term lengths and interest rates. Some types of SBA loans to consider are:

• 7(a) loan: The most popular type of SBA loan, you can use this loan for general purposes like operating expenses, equipment and refinancing debts.
• Express loan: Used for working capital expenses, this loan offers funding up to $500,000 with faster approvals by the SBA than the normal approval process, which can take up to 90 days.
• Microloans: SBA microloans are offered through nonprofits and other approved microlenders, providing loans up to $50,000 to underserved communities.

Lenders often have different requirements for SBA loans. That said, if you have solid credit, such as a personal credit score of 670 or higher, and two years in business, you should be eligible for most SBA loans.

If you have fair credit or less time in business, you may want to look for an online lender like Creditfy, which offers SBA loans to businesses with at least six months in business.

Funding Circle offers term loans for up to seven years and SBA loans for up to 10 years, which is unique among online lenders — who often offer loan repayment terms of two years or less. You can borrow up to $500,000 to pay back your current loans. You’ll also receive funds in as little as two days, whereas many small business loans can take a week or more to apply for and receive funding.

You can prequalify for a Funding Circle loan online with a soft credit pull. You will need a FICO score of at least 660 to be eligible. You’ll also likely need some type of collateral to back the loan, especially for its long-term loans.

Opening a Fundible business line of credit could be the right option if you want to pay off debts up to $500,000 with access to credit for the future. Fundible offers unusually long repayment terms for a line of credit — up to 120 months (although the website states it offers terms of up to 24 months). Fundible is also known to work with business owners who don’t have pristine credit. You may be eligible with a personal credit score of 580 or higher.

The best way to start a Fundible loan application is to call Fundible’s responsive customer service at 855-784-0008. Requirements to qualify include:

• 580 personal credit score or higher
• At least six months in business
• At least $200,000 in annual revenue

Accion Opportunity Fund strives to offer loans to small business owners edged out of traditional financing, potentially including applicants with bad credit. It does so while providing low starting interest rates from 7.49 percent simple interest. Its single loan product, the Progress loan, offers flexible loan terms from 12 to 60 months. Accion Opportunity Fund only offers up to $250,000 in funding, which is common for an online lender but lower than the $500,000 or more that most traditional lenders provide.

You can apply for a loan straight from Accion’s website. The lender isn’t upfront about the qualifications it considers, though it does focus on small businesses that have had trouble qualifying for funding elsewhere.

Fora Financial offers loan amounts of up to $1.5 million for its short-term loans. Loans have up to 16-month terms, and you won’t have to provide collateral, though you still have to qualify based on your credit and revenue. This loan works well if you have a larger amount of debt but can repay it on a tight timeline. This loan is also revolving, allowing you to borrow more once you repay the initial amount.

Fora Financial takes a relaxed approach to business loan requirements, allowing you to get a loan with just:

• At least 3 months in business
• 500 FICO credit score or higher
• $15,000 in gross monthly sales, though a spokesperson stated $144,000 per year

If you’re pressed for time when looking to consolidate your business loans, perhaps because payments are coming due, Backd can provide funding in as little as 24 hours. This online lender offers working capital loans between $10,000 and $2 million, whereas most fintechs stop funding at $500,000. You can only get short loan terms up to 16 months, so you’ll need to be prepared to pay back your consolidated loan quickly. Also, understand that Backd charges factor rates, meaning the interest applies to the entire loan upfront.

Apply for a Backd loan online or by calling 737-256-7458. Backd has lenient but common requirements to be eligible for its business loans, including:

• 600 minimum credit score
• 1 year in business
• $100,000 in annual revenue for its working capital loan