That’s a good question. There’s no standard small business loan rate that applies to all businesses. The cost of your small business loan will depend on what you qualify for. Lenders will look at criteria such as your credit score, annual revenue, and time in business, then qualify you for loans that have various terms and rates depending on the risk of funding your specific business.
At the end of the day, there’s no such thing as a free loan (even your super-rich uncle is going to charge you interest if you borrow from him). The terms and rates for loans are situational, and since they impact the price of the loan, there’s no way to know the real cost of your loan until you see what you qualify for.
The good news is that your dedicated loan specialist is happy to help answer any questions and help guide you to the most cost-effective small business loan to meet your needs.
A couple of the key metrics to keep an eye on are each loan’s interest rate and APR. The interest rate is basically the percentage the lender would charge you on the loan amount. Simply put, it’s the cost of the money. Pay close attention to additional fees the lender may charge — like processing fees, origination fees, or documentation fees. These would all be included in the loan’s APR, which can often give you a more accurate picture of the total cost of the loan.