Average Business Loan Interest Rates for 2024
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5 Factors That Determine Business Loan Interest Rates
1. General Interest Rates
2. Lenders
3. Types of Loans
Bank Small Business Loans
Online Term Loans
SBA Loans
Business Lines of Credit
Invoice Factoring
Merchant Cash Advances
4. The Business's Finances
Credit Scores: Personal and Business
Good: 80-100 Fair: 50-79 Bad: 0-49
Business Income
Time in Business
Quantity of Collateral
5. Industry
Fixed vs. Variable Interest Rates
Pros of Fixed and Pros of Variable
Cons of Fixed and Cons of Variable
How To Compare Business Loan Rates
Business Loan Fees
Application fee Processing fee Closing fee Origination fee Prepayment fee Late payment fee Monthly service fee
How To Calculate Total Business Loan Cost
The loan amount The annual interest rate Other fees associated with the loan (origination fees, closing costs, etc.) The loan term
The Takeaway
Frequently Asked Questions
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