Business Debt Consolidation Rates and Terms

Business debt consolidation rates typically range from 7% to 30% APR for bank or SBA loans, while private term loans and revenue-based options may range from 15% to 45% total cost of capital. Terms generally span 1 to 5 years, allowing owners to replace high-frequency daily or weekly payments with a single, lower monthly installment. The final rate depends heavily on your debt-to-income ratio, FICO score, and the total value of the positions being refinanced.

Last updated June 8, 2026

This is for established business owners who feel 'suffocated' by multiple high-interest short-term loans or MCAs. If you are spending more time managing your various payment schedules than growing your business, consolidation is designed to simplify your life and protect your margins. It works best for entities with consistent revenue that simply need better terms to thrive.

It is also ideal for owners who have survived a 'cash crunch' using expensive bridge capital and are now ready to graduate to more traditional, lower-cost financing. If your business is fundamentally healthy but burdened by legacy debt costs, we provide the path to restructure that debt into a single, predictable line item.

Requirement	Typical standard
Minimum FICO Score	600+ (550+ for specialty programs)
Time in Business	2 Years (Standard) / 6 Months (Private)
Monthly Revenue	$25,000 minimum monthly average
Debt Service Coverage Ratio (DSCR)	1.15x or higher preferred
Consolidation Amount	$50,000 to $5,000,000+
Typical APR Range	7.9% - 45% (based on risk)
Frequency of Payments	Monthly or Bi-Weekly preferred
Maximum Term Length	Up to 10 years (SBA) or 5 years (Private)

When this makes sense

• You are managing 3 or more daily/weekly payments that are significantly impacting your operational cash flow.
• Your business credit score has improved since you took out your original high-interest funding.
• You have high-interest Merchant Cash Advances (MCAs) that you want to convert into a fixed monthly term loan.
• The total cost of the new loan is lower than the remaining interest and fees on your current debts.

When to be careful

• The new loan term is so long that the total interest paid (even at a lower rate) exceeds the original debt cost.
• The consolidation loan requires personal collateral (like your home) for unsecured business debts.
• The lender charges an origination fee higher than 5%, which eats into your immediate cash flow savings.
• You haven't addressed the underlying cash flow issues that caused the debt accumulation in the first place.

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