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Business debt consolidation loans can be an effective way to manage and simplify your business's financial obligations by combining multiple debts into a single loan with one monthly payment. Here are some of the best options available in 2024:
OnDeck:
- Best for Fast Funding: OnDeck offers term loans up to $250,000 with a minimum credit score requirement of 625. It is known for its quick application and approval process, making it ideal if you need to consolidate debt quickly (NerdWallet: Finance smarter) (LendingTree).
Fora Financial:
- Best for Bad Credit: Fora Financial provides loans up to $1,500,000 for businesses with credit scores as low as 570. They are a good option for businesses with less-than-perfect credit looking to consolidate debt (NerdWallet: Finance smarter).
Funding Circle:
- Best for Long-Term Loans: Funding Circle offers loans up to $500,000 with terms extending up to 10 years. This lender is suitable for businesses with a minimum credit score of 660, providing competitive rates and flexible terms (NerdWallet: Finance smarter) (Fundera).
SBA 7(a) Loans:
- Best for Large Loans: SBA 7(a) loans can be used for debt consolidation with loan amounts up to $5,000,000. These loans typically offer lower interest rates and longer terms, but they require a minimum credit score of 650 and a strong financial profile (LendingTree) (Fundera).
Accion Opportunity Fund:
- Best for Unsecured Loans: Accion provides working capital loans up to $250,000 with no collateral required. They cater to businesses with a minimum credit score of 570 and offer competitive rates and terms (NerdWallet: Finance smarter).
Traditional Bank Loans:
- Best for Highly-Qualified Borrowers: Banks and credit unions offer some of the best rates and terms for debt consolidation loans. However, they often require high credit scores, substantial revenue, and several years of business operation (Funding Circle).
When considering a business debt consolidation loan, it's important to compare the interest rates, fees, loan terms, and the specific requirements of each lender to find the best option for your needs. Additionally, ensure that consolidating your debts will indeed result in lower monthly payments and overall interest costs, rather than just extending the loan term and increasing total interest paid over time.
For more details and to explore your options, you can visit sources like NerdWallet, LendingTree, and Funding Circle (NerdWallet: Finance smarter) (LendingTree) (Funding Circle)
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