Updated · LoanHelp editorial team · Editorial policy
Business debt consolidation rolls multiple business debts into one new obligation with one payment schedule. It can lower your monthly payment only when the new payment is smaller than the combined payments you pay today — but a longer term can still mean you pay more in total even when the monthly payment drops. LoanHelp does not consolidate debt or pull credit to inquire.
Payment vs. total cost: what to compare first
Consolidation lowers your monthly payment only when the new payment is smaller than the sum of what you pay today. It lowers your total remaining cost only when (new payment × new months) is less than the sum of (each current payment × its months left). A longer term can reduce the monthly check while you still pay more dollars overall.
Enter your own balances, payments, and months remaining. We do not assume interest rates — only arithmetic on the numbers you provide.
- Combined monthly payment
- $1,390
- Total remaining balances
- $60,500
- Total remaining cost (payments × months)
- $45,120
Compare a consolidation offer (your numbers)
Type the single payment and term from a quote or term sheet — we multiply them; we do not calculate rates.
Check prepayment penalties and personal guarantees first
Before you refinance or consolidate, read each existing note for prepayment fees, default rates, and whether you signed a personal guarantee. The SBA Manage your business hub covers financing, taxes, and growth decisions — useful context before you change loan structures. Ask your accountant or attorney about prepayment and guarantees on your existing notes.
When a line of credit or working capital fits instead
A business line of credit fits recurring gaps — draws and repayments on your schedule — without paying off every loan in one shot. Working capital financing fits a defined shortfall (payroll, inventory, seasonality) when you know the amount and timing. If daily remittance products are on your list, compare total payback using our factoring vs. line of credit vs. MCA guide before you roll balances together.
Primary sources
The Federal Reserve Small Business Credit Survey publishes research on how small businesses use financing; we do not quote survey statistics here. For federal small business programs, see SBA.gov. LoanHelp is not affiliated with the SBA.
LoanHelp is a commercial financing referral service, not a lender or broker. We pass inquiries to our trusted financing partner; we do not name that partner on this site. This page is educational, not financial or legal advice.
Related financing
Common questions
- Does consolidation always save money?
- No. A lower monthly payment often comes from stretching the remaining balance over more months. Compare total remaining cost (payment × months left on each loan today vs. on any consolidation offer) before you decide.
- What should I check before consolidating?
- Prepayment penalties on existing loans, personal guarantees that may carry over, and whether the new note is secured. SBA.gov’s Manage your business hub and your accountant or attorney can help you read each note before you refinance.
- When is a line of credit or working capital loan a better fit?
- When you need flexible draws for payroll or inventory — not necessarily to pay off every existing loan at once. A term working-capital loan can fit a defined shortfall; a line of credit fits recurring gaps. See our working capital and line of credit guides for how each product works.
- Will LoanHelp consolidate my debt?
- No. We share one financing inquiry with our trusted financing partner; they decide whether to respond and on what terms. LoanHelp does not consolidate balances or set rates.