Best Debt Consolidation Loans for Business of 2022 – Forbes Advisor
To consolidate business debt, take out a new business loan and use the funds to pay off your existing credit card and other loan debt. All your debts are combined in a single loan with a monthly installment, often with a lower interest rate and more favorable conditions, depending on your creditworthiness.
There are a few different ways to consolidate business debt, but business debt consolidation loans and balance transfer credit cards are the most common methods.
Debt Consolidation Loans for Businesses
Debt consolidation loans for businesses are available from traditional financial institutions and online lenders. Some lenders specialize in debt consolidation, while others make general business loans that you can use for a variety of purposes.
Depending on the lender, debt consolidation loans for businesses can have lower interest rates than other business loans, making them an attractive option for businesses looking to lower the cost of their debt obligations.
Business balance transfer credit cards
With the business balance transfer credit card, the balances of existing business credit accounts are transferred to a new credit card with a lower interest rate. As with consolidation loans, this can be an effective way to reduce the cost of your debt — especially if you qualify for a 0% APR introductory period. To take advantage of these benefits, you must pay off the entire debt balance before the 0% interest period ends, and you may be required to pay a transfer fee.