💼 Business Finance

Business Debt Consolidation Calculator

Enter your existing business loans to instantly see how much you save by consolidating into a single lower-rate loan.

🔴 Current Business Debts
🟢 New Consolidated Loan
% p.a.
SBA 7(a) loans: 10.5%–13.5% | Bank term loans: 6%–12%
% of loan
Typical: 0.5%–3% of consolidated loan amount
Results update automatically as you type. Switch loan type or term to see different scenarios.
📈 Consolidation Analysis
Monthly Savings
—
vs current payments
Total Interest Saved
—
over loan life
New Monthly Payment
—
consolidated payment
Blended Current Rate
—
weighted average now

🔴 Before Consolidation

Number of debts—
Total balance—
Blended rate—
Total monthly payments—
Remaining interest—

🟢 After Consolidation

Single loan balance—
New rate—
Term—
Monthly payment—
Total interest paid—
■ New loan cost ■ Interest saved vs before

What is Business Debt Consolidation?

Business debt consolidation combines multiple business loans, lines of credit, merchant cash advances, or other debts into a single loan with one monthly payment. The goal is to reduce the overall interest rate, simplify cash flow management, and often lower the total monthly payment burden.

When Should You Consolidate Business Debt?

  • Multiple high-rate loans — merchant cash advances or short-term loans often carry effective rates of 40%–150%+ APR.
  • Cash flow strain — too many payments to track affecting day-to-day operations.
  • Improved credit — your business credit has improved since the original loans, qualifying you for better rates.
  • Expansion planning — freeing up monthly cash flow to fund growth.
  • Rising rates on variable debt — locking in a fixed consolidation rate.

Common Business Debt Consolidation Options

SBA 7(a) Loans

The most common government-backed business loan, with rates typically 10.5%–13.5% (Prime + 2.25%–4.75%) and terms up to 10 years. Ideal for consolidating high-rate short-term debt. Requires strong credit history and 2+ years in business.

Bank Term Loans

Conventional business term loans from banks typically offer rates of 6%–12% for qualified borrowers. Good for businesses with strong financials and established banking relationships.

Business Lines of Credit

A revolving line of credit can replace multiple smaller debts with flexible access to funds. Rates typically 8%–24% depending on lender and creditworthiness.

Online Business Lenders

Fintech lenders (Kabbage, OnDeck, Fundbox) offer faster approvals but typically higher rates (15%–35%). Best for businesses that don't qualify for traditional bank financing.

Key Metrics to Compare

  • APR vs factor rate — merchant cash advances use factor rates (1.2–1.5), not APR. Convert to APR before comparing.
  • Total cost of capital — compare total interest paid, not just monthly payment.
  • Prepayment penalties — check if existing loans have early payoff fees.
  • Origination fees — factor into total cost comparison.
  • Cash flow impact — will the new payment leave enough working capital?

Frequently Asked Questions

A business debt consolidation loan combines multiple existing business debts — such as short-term loans, merchant cash advances, lines of credit, and business credit cards — into a single loan with one monthly payment, typically at a lower interest rate.
Applying for a new consolidation loan involves a hard credit inquiry, which may temporarily lower your credit score by a few points. However, successfully consolidating and making on-time payments on the new loan can improve your score over time by reducing your overall debt burden and utilization.
Business lines of credit, merchant cash advances, equipment loans, business credit cards, short-term business loans, and SBA loans can often be consolidated. Some lenders also allow consolidation of accounts payable and supplier financing.
Savings depend on the interest rate difference between your current debts and the new consolidated loan rate, total balance, and new loan term. Businesses replacing merchant cash advances (effective APR 40%–150%) with bank loans (8%–15%) can save tens of thousands of dollars.
Most traditional bank lenders require a personal credit score of 680+ and a business credit score of 75+. SBA loans typically require 650+. Online lenders may approve scores as low as 550–600 but at higher rates. Strong business revenue and time in business (2+ years) can offset a lower score.
Extending the term reduces monthly payments but increases total interest paid. Use this calculator to compare scenarios — sometimes a moderate term extension with a much lower rate still saves significant total interest even with a longer payoff period.

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