Refinancing debt
Reduce payments. Simplify debt. Boost cash flow.
Whether you have growing credit card debt or loan payments, securing a financing solution to help you refinance or consolidate debt is a common way to use funding. In fact, 27 percent of businesses searching for financing did so to pay down debt, according to the 2024 Small Business Credit Survey.
Refinancing means replacing an existing debt with a new loan that has different terms. Consolidating business debt means replacing one or more existing loans with a new financing solution, which typically offers better terms to reduce your financial strain. In both cases, the new terms could include lower interest rates or more manageable monthly payments, and both of these can decrease your financial burden.
At SmallBusinessLoans, we connect you with trusted financing providers who can help you simplify your debt load — so that you can get back to focusing on your business.
Common types of debt
If your business has accumulated various types of debt — and the monthly cost is straining your cash flow — refinancing or consolidating your finances can help.
Here are some types of debt that you can refinance or consolidate by using a new financial solution:
Whether you have credit card debt with high APRs or multiple loans that are difficult to keep track of, SmallBusinessLoans can help you find a more manageable solution.
Refinance or consolidate debt to simplify your finances.
How to use financing to simplify your debt
There are many benefits to consolidating debt: It can improve cash flow, simplify your finances, and even reduce the overall cost of borrowing in some cases. But knowing where to begin can feel overwhelming when you’re already under pressure.
In any case, you don’t have to worry. We’ve prepared a step-by-step guide that will help you evaluate your current financial situation and find the right solution.
Step 1: Assess your current debt
Start by gathering detailed information on all your existing obligations:
- Loan balances, interest rates, and monthly payments
- How much longer you’ll be paying based on current terms
- Prepayment penalties (some loans charge fees for paying off early)
Then, identify which debts are the most expensive or restrictive — those are the best candidates for refinancing or consolidation.
Step 2: Check your credit and financial health
Lenders will review your business and personal credit scores, as well as financial performance indicators like your company’s debt-to-income ratio, collateral, and time in business.
If your financials have improved since you first borrowed, you’ll likely qualify for better terms on a new loan. This could be a good reason to consider refinancing or consolidation.
Step 3: Determine your goals
Carefully consider what you want to achieve. Common goals include:
- Lowering interest rates.
- Reducing payments by extending the loan term.
- Consolidating multiple loans into one simpler payment.
- Switching from variable to fixed rates for stability.
- Freeing up cash flow for new investments.
Your goals will determine the best type of financing product to use (i.e., refinancing, consolidation, or something different).
Step 4: Compare your options
Refinancing or consolidation can be done through your bank, an online lender, or the SBA. With SmallBusinessLoans, you can compare all the best financing options for your profile (both institutions and solutions) — all in one place.
Step 5: Evaluate the costs versus benefits
Ask yourself these questions before finalizing any new financing agreement:
- Does the interest rate reduction outweigh any fees (origination, prepayment, etc.)?
- How does the extended term affect the total interest paid over time?
Step 6: Apply for a new financial solution
Applying is quick and easy with our financial partners. You’ll typically need to provide:
- Business bank statements
- Credit score
- Ownership information
You may also need to provide additional information on your current debt payment schedule.
Using debt consolidation financing
Let’s say you run a restaurant.
You’ve accumulated credit card debt and business loan debt, and managing the payments for both has become difficult given your busy schedule. If you could have one payment — and avoid the high APR on your credit card — you’d be in a much better position.
So, you decide to apply for new financing from one of your recommended options on SmallBusinessLoans. The new solution has a lower rate and better repayment terms, making payments much more affordable.
By using the funds to pay off your credit card and the old loan debt, you can focus on running your restaurant, and you can use any remaining capital to reinvest in your operations — and, ultimately, increase your peace of mind.
Best financing options for refinancing debt
No matter your current financial situation, SmallBusinessLoans is here to help by matching you with the best financing providers to simplify your debt burden. Below, you’ll find the top financial solutions you’ll want to consider when consolidating or refinancing debt.
SBA loans
SBA-backed loans typically offer low rates and long terms, which makes them an affordable option for debt consolidation. Just keep in mind that approvals are slow, if you qualify.
Business term loan
Alternative lenders can work quickly to get you funded in as soon as 24 hours, so you can reduce financial strain fast and get back to running your business.
Balance transfer cards
These credit cards usually offer a promotional introductory APR period with no interest, so you can pay down your principal balance quickly without interest charges and save.
Ready to find your top match for debt consolidation? We’re here to help.
Fill out our quick and secure online form to view your recommended options, instantly.
