Are you a small business owner looking for the best business loan interest rates but don’t know where to start?
Applying for a business loan can help your business grow, but first, you must be sure that you understand the business loan interest rates and what type of loan solution you are using for your company.
There are alternative and traditional lenders that offer different finance products that suit most types of business activities and their financial demands.
Business Loan Interest Rates: How do interest rates work?
Interest rates vary depending on the lender and between the diverse business loan options available. Generally, secured business loans start from around 5%, and unsecured business loans begin from approximately 12%.
Does my company history impact the interest I pay?
The duration of the loan and the interest you pay are based on how risky your business is. It may depend on how long you have been in business. If you are a brand-new company with a small turnover, you will probably pay a higher interest rate than a well-established company.
As stated earlier, when we are talking about business loan interest rates, we must take into consideration the lender, the lending criteria and the loan option that’s most suitable/feasible for your business needs.
In general, these are the elements to consider:
- The business profile of your company: company history
- Your annual and monthly turnover
- Your most valuable assets
- The best loan option and the goals you want to achieve
- Secured or unsecured loan: which one is better for your industry
Do I need a business loan?
Whether you are a brand-new business in the industry or have been in business for years, one of the common reasons for obtaining a business loan is to improve cash flow in the business Other causes may be that you want to grow your business and take it to the next level.
A business loan can give you the cash you need to expand your activity and for buying inventory, new machinery and equipment. Besides, if you want to start creating a marketing campaign for promoting your small business online, a business loan will provide the funds you need to make it happen.
Once you have decided that you
want to apply for a business loan, you will need to identify your financial issues and choose between different business loan options for small businesses. At Sure Capital we offer a range of flexible loans options that may suit your situation and your business plan:
- Secured business loan,
- Unsecured business loan,
- Equipment finance,
- Merchant cash advance,
- Business line of credit
- Invoice factoring.
How to choose the right loan option with lower interest rates?
Secured business loans usually apply much lower interest rates compared to unsecured business loans. This is because the risk will be less for the lender with a secured business loan. With a secured business loan, you use your property or other assets (machinery, equipment, etc.) as collateral and the lender can sell it to recoup the money if you can’t pay him back. On the contrary with an unsecured loan, you don’t pledge collateral.
How much funding do you require?
Are you ready to get a business loan? Find more information on our small business loan options to get the best loan for you or get in touch with one of our expert consultants.