When applying for a business loan, small business owners have to be aware of the numerous factors that impact the cost of the loan (commercial loan rates).
Financial institutions like banks have different rates than direct lenders and the SBA. Banks usually have a lower rate, but for a longer period of time. Meaning even though the annual interest rate is lower than those of direct lenders, after completing financing, the amount you end up paying for interest will not be all that different from a direct lender, which has higher rates but for shorter periods.
Banks primarily focus on a business owner's credit score (FICO), while direct lenders focus on business cash flows. Preferable credit scores for when applying for a loan with a bank is above 700. You can get more info on commercial loan rates on loancompute.com.
Financial institutions like banks have different rates than direct lenders and the SBA. Banks usually have a lower rate, but for a longer period of time. Meaning even though the annual interest rate is lower than those of direct lenders, after completing financing, the amount you end up paying for interest will not be all that different from a direct lender, which has higher rates but for shorter periods.
Banks primarily focus on a business owner's credit score (FICO), while direct lenders focus on business cash flows. Preferable credit scores for when applying for a loan with a bank is above 700. You can get more info on commercial loan rates on loancompute.com.