1 / 8

Understand Business Loan Interest Rates

Explore the definitive guide to business loan interest rates and discover what influences rates, how they vary by loan type, and tips to secure the best deal. Gain the knowledge you need to make informed financial decisions for your business.<br>

Amelia175
Download Presentation

Understand Business Loan Interest Rates

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Understand Business Loan Interest Rates

  2. What Are the Interest Rates on Business Loans? The plethora of lenders in the market today gives small business owners a number of financing options, yet there isn’t one single location to shop rates from all lenders at any given point in time. This makes it difficult to see how all business loan interest rates compare.

  3. How Are Interest Rates on Business Loans Determined? One of the key components of interest rates is the prime rate. The prime rate is the interest rate that banks charge their most credit-worthy clients. The prime rate itself is determined by the federal funds rate, which is the interest rate that banks charge each other. The SBA -- and all lenders -- use the prime rate as a floor when setting interest rates.

  4. Fixed Rates vs. Variable Rates

  5. Fixed rates also have a potential downside. If, for instance, a business owner received a fixed rate at a higher interest rate, they can be locked into the rate even if rates were to drop. In such cases, business owners have the option of refinancing at the lower rate.

  6. Variable rates can be misleading since they are often lower initially than fixed rates but can easily rise. This, in turn, can saddle the small business owner with an expected higher monthly payment. This unpredictability of variable rates can make it tough for business owners to plan and budget for the future.

  7. Why Choose Biz2Credit? • Trusted partner for franchise funding • Biz2Credit was founded in 2007 and has provided more than $10 billion in loans. • Dedicated support team • Tailored financing solutions

  8. Thank You

More Related