Average Small Business Loan Interest Rates in 2022: Comparing Top Options
The average small business loan interest rate varies by the type of lender, loan product and whether your interest rate is fixed or variable. Choosing the right loan for your business depends on several factors, including your intended purpose, business history, revenue, credit score and the type of lender.
Remember, the loan that appears to be the least expensive up front might not always be the case. Consider the loan from all angles, and keep an eye on its interest, fees, term and any prepayment http://rapidloan.net/installment-loans-sc penalty fees.
- Average small business loan interest rates by lender
- Average small business loan interest rates by loan product
- Other factors that affect your small business loan interest rate
- Types of fees
- What does it take to qualify?
Average small business loan interest rates by lender
The average rates for small business loans will vary by lender and loan type, and the lowest rate may not always be best for your unique business needs. The table below shows some of the most common types of business loans, as well as their averages, and maximum and minimum annual interest rates along with the average loan amount.
Note that the average loan amount tends to be much higher for variable-rate loans, while fixed rate loans offer less money, but tend to have the lower average annual interest rate. Fixed interest means it stays the same over time, while variable means the interest rate can change over the course of the loan. Those changes are based on the market, usually a financial benchmark set by the bank.
With a variable-interest rate loan, you risk the interest increasing drastically but you could also potentially see the benefits of the interest dropping quite low. Continue reading “Average Small Business Loan Interest Rates in 2022: Comparing Top Options” →