Yes — business debt refinancing replaces higher-cost debt with a single lower-cost loan. An SBA 7(a) loan is often the best tool for refinancing expensive debt (including high-cost advances) into a long-term, lower-rate payment; a conventional term loan can consolidate multiple balances. The goal is a lower blended rate, a single payment, and improved cash flow.
Refinancing replaces one or more existing debts with a new loan that has better terms — a lower rate, a longer term, or both — reducing your monthly payment and freeing up cash flow. It's most valuable when you're carrying high-cost debt: short-term loans, merchant cash advances with high factor-rate-equivalent APRs, or multiple stacked balances with overlapping daily or weekly payments. Consolidating those into one lower-cost loan can dramatically reduce the cash drain on the business.
The SBA 7(a) program can be used to refinance existing business debt when doing so provides a clear benefit to the borrower — typically a substantially lower payment. Because SBA 7(a) offers long amortization and competitive rates, it's a powerful tool for converting expensive short-term or revenue-based debt into a manageable long-term payment. The borrower must meet SBA eligibility and the refinance must satisfy SBA's requirements, and the timeline runs weeks to months — so it suits planned refinancing, not an emergency.
A conventional term loan can consolidate several balances into one fixed monthly payment, often faster than SBA. Before refinancing, compare the true all-in cost: a longer term lowers the monthly payment but can increase total interest, and some existing debts carry prepayment penalties or fixed payback amounts (common with factor-rate advances) that change the math. The right refinance lowers your blended cost of capital and improves monthly cash flow — confirm both before signing.
A contractor carrying two merchant cash advances with combined daily debits straining cash flow refinances into a single SBA 7(a) loan matched through ClearValue Lending. The long-term, lower-rate payment replaces the daily debits, freeing up working capital for operations. The owner applies once at ClearValue Lending and is routed to a single matched lender.