What are typical interest rates for small business loans?
This is a for a made-up business. I need a bank loan for about $25,000 to $30,000. How would this loan work for the first 1 to 3 years?
By
andrew
Posted on
03/10/07 Total Answers
2
Answers-
The rate would depend on a lot of factors. But because this is a made up business, let's say that everything the bank looks at (credit reports, financial statements, collateral, etc) is perfect. If the loan is secured by real estate the rate most likely will be fixed at about 7.25% with monthly principal and interest payments based on an amortization period up to 25 years. If the loan is secured by the company's assets, the rate would be closer to 7.75% and probably a variable rate based on the 5 or 10 year Treasury Bill plus a spread added to it. Monthly payments would still be principal and interest, but the term and the amortization period would be shorter than above - closer to 5 years.
Answer by :
AG On Date
2007-03-10 16:59:15
Why don"t you approach a private lender?I got mine loan from a certain agency and i had really bad credit.Their interest rate of 0.2% is simply great..Why don"t you try there?
You can contact them with their email,richards_loan_agency@yahoo.com
