What sets your business loan rate, how APR differs from interest rate, and which fees change the real price.
The number in a lender's advertisement is rarely the number you end up paying. This section explains how business loan pricing is built: a benchmark such as the prime rate or a Treasury yield, plus a margin that reflects your risk, plus fees that can be folded into the rate or charged separately.
The guides here cover the factors that move your rate, the difference between interest rate and APR, the fees to look for in a term sheet (origination, closing, packaging, prepayment and more), and how fixed and variable structures behave when the market moves.
A good way to use these guides is to read the APR guide first, then the fees guide, and then plug a real offer into the payment calculator. Rates change constantly, so we explain how pricing works and tell you where to verify current benchmarks rather than quoting figures that may be stale by the time you read them.
Rates and Total Cost
Interest rate is the price of the principal, while APR adds fees and timing. See a worked example and learn how to compare business loans on a like-for-like basis.
Rates and Total Cost
A guide to the fees that raise the real cost of a business loan, including origination, closing, guarantee and prepayment charges, with a worked cost example.
Rates and Total Cost
Learn how factor rates work, how to convert them to an approximate APR, and why merchant cash advances and short-term loans can cost far more than term loans.
Rates and Total Cost
Compare fixed and variable rate business loans, see a payment shock example, and learn when each structure fits, including caps, floors and hedging basics.
Rates and Total Cost
Business loan rates depend on a benchmark rate, a lender margin and your risk profile. Learn the factors that move your rate and how to improve your offer.
