Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources

It is a common situation: a business cannot qualify for a traditional small business loan so the owner takes out multiple personal loans or merchant cash advance loans with high interest rates. Pretty soon those “stacked” loans with expensive fees become oppressive and can threaten the health of the company. One possible way out is to reconsolidate all that debt.

Reconsolidating debt means paying off all your smaller loans with a larger loan that has a lower interest rate. While small businesses will still not be able to qualify for a traditional bank loan if they have several merchant cash advance or other loans outstanding, online lenders are willing to make debt consolidation loans.

Online lenders include companies like SmartBiz, Fundation, and Funding Circle. They can offer interest rates around 7% to 8% for qualified borrowers. Their credit requirements are often less stringent than traditional lenders and the loan amounts can range anywhere from $20,000 to $500,000. Some online loans are secured – requiring some collateral like business inventory, property, or accounts receivable – but others are available as unsecured. They will just typically cost a little more. The loan terms can be as short as 6 months or as long as 10 years, depending on the amount and the purpose of the loan. Loan application is typically much shorter than with a bank loan, with some online lenders granting approval within just a day or two.

Once you have secured a loan consolidation, you will be able to start making one monthly payment with a much lower interest rate than before. That drop in fees should help you pay off your new loan faster. With careful planning and budgeting, a debt consolidation loan can help you get out of debt for good and hold on to your business profits.


Search for Small Business Loan Sources and receive your matched lender list
AND received FOUR free Business eBooks worth $39.95!
Search for Small Business Loan Sources