A quick funding process that offers debt consolidation business loans to business owners.
Last Updated on February 11, 2025
Shield Funding TeamA debt consolidation business loan helps businesses combine multiple debts into one loan with a single monthly payment. This can make managing finances easier and reduce costs, especially if the new loan has a lower interest rate. Instead of keeping track of different loans, credit cards, or merchant cash advances, businesses can streamline payments and improve cash flow.
These loans can be secured (requiring collateral) or unsecured (based on creditworthiness). Lenders consider factors like credit score, revenue, and overall financial health when approving a loan. By consolidating debt, businesses can lower their monthly payments, reduce financial stress, and focus on growth instead of juggling multiple bills.
What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
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A business line of credit works much like a credit card—you’re approved for a maximum credit limit and can withdraw and repay funds repeatedly. This makes it a great option for covering day-to-day expenses like inventory, marketing, or bar decor. With high-turnover items like bar inventory, having ongoing access to funds ensures you can restock as needed without financial strain.
Beyond everyday purchases, a line of credit is also useful for handling unexpected expenses or seizing business opportunities. Whether you need to repair a broken keg cooling system or invest in a last-minute event, having pre-approved funds means you can act quickly without waiting for a loan approval.
Additionally, a business line of credit can be a smart tool for refinancing or consolidating high-interest debt. If you have outstanding business loans or credit card balances, you may be able to use your line of credit to pay them off at a lower interest rate, typically ranging from 5–10%. With revolving credit limits of up to $250,000, this financing option gives businesses the flexibility to manage cash flow and reduce overall debt burdens while still having funds available for growth.
We work with borrowers who have a credit score of 650 or higher, have been in business for at least six months, and generate at least $10,000 in monthly revenue. Additionally, we require a minimum of five monthly deposits to qualify for a business line of credit.
Businesses have a lot of day-to-day expenses, and that’s what working capital funding is for. Whether it’s covering payroll, stocking your inventory, refinancing debt, or taking advantage of a marketing or advertising opportunity, these loans help you with the more mundane expenses of running a business.
Like our term loans, you can get up to $1,000,000 in working capital. You still get the option of terms between 12 and 36 months and interest rates from 9–45%. You’ll need to have two months in business, and at least $10,000 in monthly revenue to qualify. You’ll also need a credit score of 650 or better.
If you meet these qualifications, you can get the funding you need to cover any expense you might come across, from an emergency repair to making sure your stock is full of inventory.
Apply for Business Loans for Debt Consolidation!
Work with a direct lender and get debt consolidation business loans as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for two decades.
Axos Bank offers personal loans for debt consolidation, allowing you to combine multiple high-interest debts into a single loan with fixed monthly payments. amounts range from $7,000 to $50,000, with repayment terms between 3 to 6 years. The application process is straightforward, and funds can be available within two days of accepting the final loan offer. No collateral is required, and there are no prepayment penalties.
Before you approach a bank or alternative lender about a debt consolidation you will need to get prepared. Gather all information about your current business debts. While you should already be tracking everything in a spreadsheet, gather your most recent statements which show your outstanding balances and interest rates. Plug all of this information into a blended interest rate calculator.
A blended interest rate calculator will tell you how much you are paying for all your debt combined. This rate will be helpful when determining if the debt consolidation loan you are offered saves you money in interest or fees. Check your business loans to see if they have any prepayment penalties.
A prepayment penalty in your contract means that if you pay the loan off early you will have to make an additional lump sum payment to the lender. This is essentially to reimburse them for the profit they will lose out on when they do not receive all their payments. A debt consolidation business loan could still be worthwhile, but you should factor this into your calculations.
Check your credit score. Each of the major credit bureaus must provide you with one credit report yearly, free of charge at the government-monitored website annualcreditreport. Knowing what is on it, and your overall score, will tell you where you will likely be able to obtain funding. Once you have the total amount you owe and the blended interest rate, including any prepayment penalties, you are ready to approach lenders about debt consolidation. So, what are your options?
One of the first reasons that small business owners look into debt consolidation is to ease administrative headaches. If you have to make multiple payments, on multiple forms of debt, managing those payments is time taken away from running your business.
Even if you have set up auto-payments, you have to make sure that there is money in your checking account to cover the payments. With multiple lenders, you might have to worry about your checking account balances three or four days a month. It begins to take a mental toll. A single consolidated debt repayment schedule relieves all those mental burdens. It can also save you money if you have occasionally been forgetting a payment and incurring late fees.
That is not the only way that debt consolidation can save you money. When you started opening credit, you likely did not receive the best interest rates. Or your debt could have variable interest rates and you are tired of a payment that fluctuates. If you needed cash in a hurry at one point you might have stacked loans. Now you are struggling to manage it all. With debt consolidation, you combine all your existing debt into one business loan. You can often receive a better interest rate, which can possibly save you money. This is not, however, always the case. Sometimes the only benefit you will see is making your payments more manageable.
Improved cash flow can be a large factor in seeking a debt consolidation loan. With just one payment, budgeting becomes easier. Cash that is freed up can be reinvested into your business. Sometimes small business owners have to weigh the pros and cons when making the best debt consolidation decision for their business. The answer is not as simple as “save money in interest and fees,” and that is not always the best path to take.
Once you have applied and been approved for a debt consolidation loan, you will have to make a decision to determine if it is right for you. If you applied for and were approved for multiple loans, compare the different terms and rates. Perhaps you would be willing to pay a higher interest rate in exchange for a lower monthly payment. Maybe one has a prepayment penalty and one doesn’t, and you are reasonably confident that you will be able to repay the loan early.
If you only applied with one lender, compare the annual percentage rate or APR that they are offering you to your current blended rate for all your debt. Again, look at prepayment penalties, paperwork incurred costs, or other factors such as the loan’s term. It can be difficult to analyze and make these decisions on your own. After all, your business’s future could be riding on this choice. Consult a financial advisor, accountant, or trusted business mentor if you are having difficulty making your decision.
You applied for, received an offer, and accepted the terms of a debt consolidation loan and now the funds have been disbursed. What now? Do not forget the original reason that you applied for the small business loan. When a large sum of money is deposited into your bank account it can be tempting to use it for other purposes.
Either arrange for your lender to send the funds directly to your existing creditors or immediately pay off those loans yourself. Set up auto-payments with your new lender so that you never miss a payment. You want to avoid late fees and maintain your good standing with them.
Consolidating debt can initially cause a small dip in your credit score due to a hard credit inquiry, but over time, it can improve your score by reducing your credit utilization and making payments more manageable. Timely payments on the new loan will further boost your credit.
Yes, some lenders offer business debt consolidation loans to borrowers with bad credit, though interest rates may be higher. Providing collateral or demonstrating strong business revenue can improve your chances of approval.
You can consolidate most forms of business debt, including credit card balances, merchant cash advances, short-term loans, equipment financing, and high-interest working capital loans. Some lenders may have restrictions on certain types of debt, so it’s important to check before applying.
Approval times vary by lender, but some lenders can approve and fund a consolidation loan within 24 to 48 hours. Traditional banks or SBA-backed loans may take longer, sometimes several weeks.
Yes, some lenders charge origination fees, prepayment penalties, or administrative fees. It’s important to compare loan terms to ensure that consolidating your debt actually saves you money in the long run.
If you’re struggling with multiple high-interest debts and making several payments each month, consolidation can simplify your finances and lower your overall costs. However, if your business is in financial distress, other options like debt restructuring or negotiation may be better suited.
