February 20, 2019 | By Peyton Sawyer

As a business owner, you may be familiar with the different types of business loans or personal loans that are available or not available to you based on your business needs and ability to pay it back.

You may have been in need of some extra capital at one time or another and received funding from a bank loan, or even a merchant cash advance loan if you lacked the collateral or credit that a bank loan requires. The bottom line is that you could have several loans with higher interest rates than you can really afford to repay.


Finding yourself in a situation like this is very common, especially if you have been in business for quite some time. The ins and outs of business, or even the ups and downs, have caused many small business owners to borrow funding in order to sustain or grow their business. Having access to the funds you need is great, but what do you do when the money you have borrowed comes at a higher price than you can handle?

Personal Business Loan Debt

When you have more than one loan, the cost of repaying those loans can certainly add up, making it next to impossible to keep your head above water. There is nothing worse than feeling like you're drowning in a world of debt, all while trying to find a way to make your business thrive and earn an income or turn a profit.


Finding a way to fund your business in a way that you can afford can be tricky sometimes. Thinking ahead may not seem like an option when you are faced with a cash emergency that needs immediate attention. That is why some business owners that have a poor cash flow look to consolidate or refinance at one time or another.

Consolidating High Interest Loans

If you find yourself with more than one loan and need to lower your payments, consolidating is one option that you may want to consider. Having the ability to combine several loans into one, at a lower interest rate than your original loans, would be ideal. By consolidating, you can possibly lower your interest rate, lower your monthly payments, and shorten the length of your loan, allowing you to free up the necessary cash to help grow your business.

Refinancing to Pay Off Your Debt

If you have the option to refinance old debt into a lower interest loan, your business might just get the help it needs to get back on track. With debt refinancing, you would apply for a low interest loan that would be used to pay off an old loan with a higher interest rate, thereby allowing you to save money on your monthly payments.


Just remember, the main objective to combining your business debt into one payment or refinancing to pay off old debts is getting the lowest possible annual percentage rate available. Don’t be quick to make a decision. Take the time to research the top loan option for your small business.

How to Access Personal Business Loans

There are many ways to access these types of personal business loans, even if you are over-extended. It is true that the stringent loan process that a traditional loan, or bank loan requires, will eventually result in a denial for any small business owner, especially one that is over-extended. The bank will most likely consider your business to be a risk. But you are not alone. Many small businesses are getting denied traditional funding for many reasons like the lack of collateral, credit, length of time in business, industry, or if they are already over-extended on their credit, meaning they have more loans open than they think the borrower in question can repay.

How to Overcome A Traditional Bank Loan Denial

Having a business loan application rejected for any reason can be quite upsetting, especially if your business is struggling, but there are other options. Beside the use of traditional bank loans, small business owners, like you, have the option to use online alternative lenders. With an alternative or non-traditional lender, a business owner has access to a less stringent loan process with better approval rates.

Taking Advantage of Alternative Lending Options

Applying for alternative funding is a less stressful way of getting the money your business needs to prosper. Approval is not based upon the valuable collateral you have to put down or the credit history you have acquired. It's more about the revenue your business has made and will make. There are other requirements such as the amount of revenue your business takes in each month and the length of time you have been in business, but the process is quite simple and hassle-free.

Alternative Lending Products

You may be eligible for alternative lending products like a merchant cash advance, personal business debt consolidation, or refinance. Your choice should be based on what product will work best for you and your business, in the present and in the future.

Merchant Cash Advance

A merchant cash advance isn’t a loan, but actually a cash advance based upon the credit card sales deposited in a business’ merchant account. This means a business owner like you can apply for an MCA and have the funds in as little as 24-72 hours.

Debt Consolidation

Debt consolidation loans are a way to combine several loans into one. The point is to get a lower interest rate so that you can pay one low monthly payment. But debt consolidation with bad credit may come with a high interest rate, defeating the purpose. That's why it's so important know your options.

Debt Refinancing

With debt refinancing, you may have the ability to lower your monthly payments and save money over time with those lower interest rates. Just make sure the interest rate is lower than any previous loan agreement so that you can reap the benefits of refinancing, rather than make your financial situation worse. If you can get a lower rate, you may be able to improve your credit score over time, which can eventually help you to qualify for lower cost loan options in the future.