Finding the best small business loans rates is an important step for any entrepreneur who needs capital to grow their business or cover operating expenses.
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Interest rates can make a big difference in the final cost of the loan, impacting the company’s cash flow. Therefore, understanding how to achieve a low interest rate is essential to ensure that the business grows sustainably.
Learn about the best small business loans rates options today, analyzing both the advantages and requirements of each institution. So, if you are looking for a loan with a competitive rate, read on to discover the best alternatives for your business.
How to get a low interest rate?
To achieve a lower interest rate, you can adopt some strategic changes that will make all the difference in the request. Below, we will address the best practices thinking about getting a loan at the lowest possible rate.
- Give some asset as collateral: Guaranteeing the loan is a way to make the installment go down, because if you can’t pay, the asset you left will be used to pay off the debt.
- Have a guarantor: the guarantor is a person who is responsible for paying the credit for you in any default. Attention! This strategy will only work if the guarantor has a good name in the market;
- Improve your score: when you improve your personal credit, it directly impacts your business, as it shows banks that as an owner, you are responsible for paying your bills on time. By the way, if you are in debt and need to improve your score, we recommend following the tips on how to manage debt and credit scores.
Best small business loans rates
Let’s now look at the best business credits on the market:
1. Ondeck (Best Small Business Loans Rates)
OnDeck is a lending platform aimed at small businesses that need working capital quickly. It gets loan amounts between $5,000 and $250,000, and lines of credit of up to $100,000.
One of the positives of OnDeck is the affordable credit score requirement, with a minimum of 625 points.
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However, the business must be at least one year old and earn at least $100,000 per year.
The interest rate (APR) varies depending on the applicant’s profile and the type of loan. In addition, although the hiring process is quick, some customers point to the high fees as a negative point, even claiming that they felt misinformed about the final costs.
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2. Rapid Finance
At first, using Rapid Finance he gets loans from $5,001 to $1 million.
One of the advantages of this platform is that it does not require a minimum credit score. Making it accessible to entrepreneurs with different credit histories.
The quick funding process is another strength of Rapid Finance, with the possibility of getting the loan on the same day.
In addition, the company does not charge prepayment penalties or late fees, offering more flexibility for entrepreneurs.
As a rule, to be eligible, the business must have at least six months of operation and a minimum annual revenue of $200,000.
The interest rate range (APR) ranges from 8% to 40%, depending on the company’s profile and the type of loan requested.
3. National Funding
National Funding offers credits from $5,000 to $500,000. The amount is released quickly, in less than 24 hours. After the credit is approved the amount will already be available for use.
The interest rate is low, starting at 1.11%, but it can be higher depending on the profile of your business.
To be eligible, you must have a minimum credit score of 600 (or 575 in the case of equipment financing). In addition to being in operation for at least six months and generating minimum annual sales of $250,000.
In addition, National Funding offers early payment discounts for those who want to pay off their loan before the deadline.
4. TD Bank (Best Small Business Loans Rates)
TD Bank offers loans ranging from $10,000 to $1 million, with interest rates (APR) ranging from 8% to 16%.
As a rule, at TD Bank, you will not pay an origination fee, greatly reducing the initial cost of the loan. For qualified borrowers, TD Bank offers lower APRs, making their financing terms even more competitive in the market.
The minimum credit score required to qualify is 615. Additionally, TD Bank requires a minimum annual revenue of $40,000.
5. Quick Bridge
QuickBridge offers loans ranging from $10,000 to $500,000, with factor-based interest rates starting at 1.11%, making it an affordable option for businesses looking for quick funding.
One of the advantages of QuickBridge is its agility. With funding being deposited into your bank account, often the same day after approval.
Pay attention to your credit score, you must have a minimum score of 600 to be approved. Other requirements include an operation time of at least six months and a minimum revenue of $250,000 per year.
6. Bank of America
At Bank of America you can get loans starting at $7,500, with no maximum limit, and an interest rate starting at 7.44%.
The minimum credit score to apply for a loan is 580,
One of the advantages of Bank of America is the fee discount offered to bank customers. Making this option even more advantageous for those who are already customers of the bank.
It is important to note that Bank of America is present in all 50 US states, in addition to Washington, DC, offering loans throughout the national territory.
In summary, Bank of America is an excellent choice for those looking for quick loans, competitive rates, and payment flexibility.
Conclusion
Now you know all the best small business loans rates, understanding the interest rates, repayment terms, and eligibility requirements of each financial institution.
You know that each platform has its advantages. Therefore, the best way to guarantee the best rate is to evaluate the profile of your business, including time of operation, billing and credit score, in addition to adopting strategies such as offering guarantees or improving your score to get better conditions.
Therefore, when looking for a loan for your small business, compare the amounts offered in each option mentioned. This way, with planning and strategic choice, you will be well-positioned to make smarter financial decisions and ensure the sustainable growth of your business.