Current business loan interest rates by product
Published market ranges in September 2026. Bank rates assume strong borrowers with two years of profitable returns; online ranges span typical small-business files; factor-rate products are shown with an approximate annualised equivalent for a typical term.
| Product | Typical rate | Approximate annualised cost | Term |
|---|---|---|---|
| Bank term loan | 8% – 14% APR | 8% – 14% | 1 – 7 years |
| SBA 7(a) loan | Prime + 3% to 6.5% by loan size, about 10% – 13.5% | About 10% – 13.5% plus guarantee fee | 10 – 25 years |
| SBA microloan | 6% – 8% | 6% – 8% | Up to 7 years |
| Equipment financing | 6% – 30% APR | 6% – 30% | 2 – 7 years |
| Online term loan | 14% – 45% APR | 14% – 45% plus origination | 1 – 5 years |
| Business line of credit | 8% – 60% APR on drawn balance | plus draw and maintenance fees | Revolving |
| Working capital loan | 1.10 – 1.40 factor | roughly 20% – 90% | 3 – 24 months |
| Merchant cash advance | 1.15 – 1.49 factor | roughly 40% – 200%+ | 3 – 18 months |
| Revenue-based financing | 1.10 – 1.40 multiple | roughly 10% – 80%, depends on speed | 6 – 18 months |
| Invoice factoring | 1% – 5% per 30 days | roughly 12% – 60% | Per invoice |
| Product | Amount to discuss | Time to fund | Pricing structure | Eligibility review |
|---|---|---|---|---|
| SBA loan | Program-specific; 7(a) maximum $5 million | Provider-dependent; confirm availability of funds | Lender-negotiated interest subject to applicable SBA program limits; fees may apply | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Business term loan | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Quoted interest and fees; compare net proceeds and total repayment | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Business line of credit | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Interest or installment fees by provider; check draw and maintenance charges | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Equipment financing | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Loan interest or lease payments; compare deposit, fees and ownership terms | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Working capital loan | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Quoted interest or factor pricing and fees; compare the complete payment schedule | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Merchant cash advance | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Contracted remittance amount and fees; a factor rate is not APR | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
What determines your rate
Five things, in order of weight. Personal credit: each 40-point band moves online rates by several points, and thresholds at about 600, 640 and 680 open cheaper products. Time in business: under a year prices at the top; two years with returns opens bank and SBA pricing. Collateral: an asset behind the loan lowers the rate more than anything else, which is why equipment financing prices below unsecured products for the same borrower. Cash flow and statement quality: coverage above 1.25 and clean statements earn the low end of any product’s range. Term and amount: shorter terms and smaller amounts carry higher effective rates because fixed fees weigh more.
| Profile | Likely APR | Monthly payment, 36 months | Total payback |
|---|---|---|---|
| Credit 700, 4 years, clean statements | 14% | $3,418 | $123,000 |
| Credit 640, 2 years, one NSF | 24% | $3,923 | $141,200 |
| Credit 590, 14 months, several NSFs | 38% | $4,682 | $168,600 |
Reading factor rates as interest rates
Advances and working capital loans quote a factor, a multiplier on the amount, rather than an interest rate. Because the total is fixed and repaid over months on a shrinking balance, the annualised cost is far above the factor minus one. A 1.25 factor over 12 months annualises to roughly 45 percent; over six months, roughly 90 percent. The factor-rate guide on this site shows the arithmetic; the calculator page converts any amount and product to payment and total payback.
How to get a lower rate
Ninety clean days of bank statements, personal utilisation under 30 percent, no new inquiries in the month before applying, a request sized to cash flow at a 1.25 coverage, collateral where an asset exists, a longer term where total cost still fits, and one application compared across several funders rather than the first offer accepted. Refinancing an expensive advance into a term loan after six months of clean payments is the single largest rate reduction most businesses ever achieve.