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 + 2.25% – 4.75%, about 10.5% – 15.5% | 10.5% – 15.5% 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 | Typical amount | Time to fund | Cost (market range) | Minimums |
|---|---|---|---|---|
| SBA loan | $50,000 – $5,000,000 (7(a)); up to $50,000 for microloans | 30 – 90 days | Variable APR capped by SBA rules: prime plus 2.25% – 4.75% in most cases | 2+ years in business (some programs accept startups with strong plans); 650+ typical; 680+ preferred |
| Business term loan | $10,000 – $500,000 | 1 – 3 business days (online lenders) | APR roughly 8% – 45% depending on credit, revenue and term | 1 – 2 years in business; 600+ typical; 640+ for better pricing |
| Business line of credit | $10,000 – $250,000 | 1 – 3 business days to open; draws often same day | APR roughly 10% – 60%; some lenders price as a weekly fee on the drawn balance | 6 – 12 months in business; 600+ typical |
| Equipment financing | $10,000 – $2,000,000 (up to 100% of equipment cost) | 2 – 5 business days | APR roughly 7% – 30% | 6 months – 2 years (equipment secures the loan); 600+ typical; strong equipment can offset weaker credit |
| Working capital loan | $5,000 – $250,000 | 1 – 2 business days | APR roughly 15% – 60%; short-term products may quote a factor rate instead | 6 months in business; 550+ typical |
| Merchant cash advance | $5,000 – $500,000 | Same day to 2 business days | Factor rate 1.15 – 1.49 (paid as a fixed amount, not interest) | 6 months in business; 500+ (revenue matters more than score) |
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.