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When you own a small business, you know that it’s easy to fall into debt. Having cash flow problems or unforeseen emergencies can result in the problem. Other ways to fall into debt as a small business owner is taking out multiple loans, also known as “stacked” loans. These usually end up with APR rates that fall into double or even triple digits. A solution to this kind of debt is to improve your cash flow, which can ultimately help your business to grow.

Business Debt Consolidation or Debt Refinancing?

The acts of consolidating your debt and refinancing your debt are a lot alike. However, they have their noticeable differences. For instance, when you refinance a loan for your business, it is generally with a lower interest and is used to pay off your previous or original loan. Debt consolidation, on the other hand, occurs when multiple loans or merchant cash advances are put together into a single loan, which can mean you have lower payments.

More and more small business borrowers end up with multiple merchant cash advances and business loans with high interest, something known as loan stacking. This frequently occurs when you don’t qualify for a single low interest business loan. Unfortunately, if you have loan stacking, you probably won’t be able to refinance your business debt with a regular loan from a bank. Instead, consolidating your debt is for you. The following companies offer this option with certain perks:

SmartBiz: Offers Lowest Rates

As a business owner, you no doubt want the lowest rates possible when having to consolidate your debt. SmartBiz is the best option for that very reason as the company offers low rates that can help with cash flow issues. It connects business owners with US Small Business Administration recognized loans. These loans boast some of the best competitive rates. At the same time, the application process is long and tedious. You must also have a strong business performance and good credit.

Funding Circle: Best for Low Revenue

Funding Circle is great for businesses that are firmly established and want quick cash and good APR rates. The application process is faster than with SmartBiz and your business must have been active for at least two years. A credit score of a minimum of 620 is also required to qualify. There are also flexible term lengths with Funding Circle.

Credibility Capital: Good for Very Young Businesses

Your business must be at least one year old to qualify for Credibility Capital’s short-term financing options. It’s good for companies that have good credit and requires the business have $100,000 in annual revenue. However, it’s not for long-term financing.

Able Lending: For Strong Network Businesses

Able provides loans of up to $1 million, great for companies that have a sizable customer base. Its APRs range from a very low eight percent to 25. To qualify, businesses must have been around for at least one year and earn $100,000 in revenue. A credit score of at least 600 is also necessary.

Consolidating your business debt is a must if you are struggling with stacked loans. You can conveniently find the company that best fits your needs by comparing what they offer and your own qualifications.