What Are Small Business Bank Loan Interest Rates
These days, changes come at an almost unprecedented rate. However, one thing that never seems to change is the constant increase in small business bank loan interest rates.
Getting a small business loan is a necessity for most companies at some point. Nonetheless, it’s easy to get discouraged from getting the help you need due to small business bank loan interest rates. Fortunately, there is help available, if you know where to look.
A Definition of Small Business Bank Loan Interest Rates
Small business bank loan interest rates can range anywhere from five to 13 percent. This depends on how much money is being borrowed and how long you expect to take to pay it off.
Additionally, market conditions can also affect interest rates. If you have a variable rate loan and the prime rate or LIBOR rate goes up, it can affect your business bank loan.
Interest rates are also determined by other factors. For instance, the type of quick business loan you want, the industry you are in and whether you are considered to be a good risk are used to decide what you will pay in interest. The region where you live and your credit score may also affect how much you will owe in the long run.
Why Small Business Bank Loan Interest Rates Don’t Apply to Alternative Lenders
Interest rates for banks and alternative lenders are not looked at properly by most borrowers. This is because they often fail to consider how long the loan or line of credit will be open.
Those who require less than $200,000 for uneven cash flow or other temporary issues should consider an alternative lender instead. Financing Solutions (www.financingsolutionsnow.com) has the financial products you need for short term business funding.
At Financing Solutions, you can get same day business funding. They offer quick and easy repayment options. This allows you to repay the money in a few weeks or months, without penalty. Even if you find a lender with low interest rates, you would still end up paying more over time. Quick business financing from an alternative lender is less expensive.
For example, let’s say you only need the money for a short period of time. Then you don’t have to calculate the annual fees, maintenance fees and other fees that a bank would charge. There also may be fees to apply for the small business loan or keep the line of credit in place. So APR (annual percentage rates) simply doesn’t apply when getting fast business cash from many alternative lenders.
How to Improve Your Business Growth Rate
Whether your business is only a few years old or you have been around for awhile, you need to grow. By following these tips, you may get there faster.
Knowing what your customers want and staying ahead of trends will help to set you apart from the competition. The ability to anticipate what comes next and being the company to provide it will send customers to your door. Dedicate time each week to research your industry and really engage your customers.
You must also constantly look for ways to add value to your customer’s lives. This keeps your business from becoming stagnant. Use social media and brainstorm with staff for ideas. When doing so, ask yourself how it will help your customers. If you can’t answer that, it’s not a good plan.
The best way to improve growth is with fast business funding from Financing Solutions. Trust them to help take your business to the next level.