Updated: January 18, 2023 | By: LendVer Staff –
Whenever anyone begins looking for financing the starting point is always the same; how to find the lowest rate. The quest is no different when it comes to locating business financing and finding a low rate may matter more, since business loan sizes tend to be larger than personal loan sizes putting more potential savings at stake. We have done the research for you and have located the lowest business loan financing options available.
Business Credit Cards
Business credit cards can carry high interest rates but there are many cards available that offer introductory promotions. If you are an established business, have good personal credit and only need a small amount of financing, then opening up a business credit card with a promotional offer may be the best choice for you. There are many cards available offering 0% APR introductory financing for a 12 month period, meaning you can borrow funds up to your maximum credit limit for 12 months without paying a dime in interest. There is no other financing option available that offers you access to capital for free. The catch is that you must pay your balance off before the introductory period, and after 12 months your APR will increase back up to the card’s usual interest rate. Also, if you are looking for greater than $15,000, are a newer business or don’t have great credit, a 0% APR promotion may not be available to you.
Working Capital Loans & Credit Lines
Small Business Administration or SBA loans and credit lines are a great way to access larger amounts of business capital at below market rates. Because SBA loans are guaranteed by the US government, lenders are able to offer very favorable terms. SBA loans can involve more paperwork and take longer than other types of business loans which is why it’s important to work with a loan provider who has significant experience and utilizes technology to expedite the process. SmartBiz has provided over $9 billion in financing, and its been able to do it in record time because of its proprietary loan processing software. SBA working capital loans have low rates of only Prime + 2.75% to 3.75%, they are amortized over 10 years which keeps your payment low, and there is no prepay penalty so the loan can be paid off anytime without incurring extra fees. SmartBiz also offers low rate business credit lines and bank term loans, which makes it a well rounded option for any business owner seeking a variety of affordable financing options.
Conclusion
Finding the right lender to work with can be difficult and making sure you are getting the best rate available can also be frustrating. The lenders outlined above offer you the best chance at accessing affordable business capital quickly, and instill the confidence that you are partnering with a lender that will treat you fairly and help you grow your business.