 TITLE: What Is the Average Interest Rate on a Business Loan? CONTENT: How to Lower Your Business Loan Interest Rate\n---------------------------------------------\nIf you're looking for a business loan, there are a few steps you can take to help you find or qualify for a lower rate.\n*   **Improve your personal credit.** Particularly for new and small businesses, your personal credit can play an important role in the rate you receive. Improving your personal credit before applying may help you get more favorable terms.\n*   **Compare lenders.** Lenders may offer you different types of financing, and each lender may have its own method for analyzing your application and determining your loan's interest rate. Applying with several lenders can help you find the loan with the best rate.\n*   **Prioritize loans from banks and the SBA.** If you start early and can qualify, traditional bank loans and SBA loans may have the lowest interest rate. However, the application and funding process can take weeks or months.\n*   **Look for secured loans.** If you can offer business assets as collateral for your loan, you may find it's easier to get a secured loan with a low rate than an unsecured loan.\n*   **Choose a shorter term.** Generally, the less time you take to repay a loan, the lower your interest rate will be. However, your payments will also be higher, which could negatively impact your cash flow.\n*   **Opt for a variable-rate loan.** If your loan has a variable interest rate, the rate may start lower than a similar loan with a fixed rate. It's a risky option, though, as the interest rate and your payment amount may rise in the future.\n*   **Compare fees.** Your loan's interest rate might not be the only cost. Also, review the lenders' fees to determine which loan will cost the least overall. END