1 Factor rate is the financing cost divided by the loan amount – but that’s not how traditional interest rates work. For example, if you pay 30 cents for a one-year loan of one dollar, your factor rate is 30% but is equivalent to a 55% interest rate! Factor rates can make short-term loans appear less expensive than a traditional interest rate would.
Most small business loans are fixed rate loans. Unsecured vs. secured business loan A secured loan is backed by an asset (property, machinery or a vehicle, for example), which means the lender can claim ownership of the asset if the loan isn’t repaid.
Fixed rate commercial mortgage makes budgeting and planning easier for your business. fixed rate commercial mortgage products are mortgages that have a fixed interest rate and payment for the full term of the loan. These loans make it easier to budget, especially over the long term, and offer stability across an ever-fluctuating market.
Commercial lenders have been able to assist more small businesses with the longer-term loan, used for fixed asset financing. June borrowers financed at the lowest-ever rate of 4.09% WASHINGTON, June.