Understanding business loan interest rates is critical for making smart financing decisions. Rates vary widely depending on the type of loan, your creditworthiness, time in business, and the lender you choose. Here is what business owners can expect to pay in 2026 across every major loan type.
Business Loan Rates by Product Type
Each funding product has a different rate structure. Here is what you can expect:
- Term Loans: 7.99% to 24.99% APR. Best for established businesses with good credit and 2+ years in operation. Check your rate.
- Lines of Credit: 8% to 25% APR. Similar to term loans but you only pay interest on what you draw. Check your rate.
- Equipment Financing: 5.99% to 19.99% APR. Lower rates because the equipment serves as collateral. Check your rate.
- Merchant Cash Advances: Factor rates of 1.15x to 1.45x. Not technically an interest rate — you repay a fixed amount based on a factor multiplied by the advance. Get a quote.
- Commercial Real Estate: 6.5% to 12% APR for stabilized properties. Rates depend heavily on property type, LTV, and DSCR. Check your rate.
- DSCR Loans: 7% to 11% for investment properties. Qualification based on rental income, not personal income. Check your rate.
What Affects Your Interest Rate
Several factors determine the rate you will receive: personal credit score (higher score equals lower rate), time in business (newer businesses pay more), annual revenue (higher revenue signals lower risk), loan amount and term (larger and shorter loans often have better rates), and collateral availability (secured loans have lower rates).
How to Get the Lowest Rate Possible
To secure the best rate, improve your credit score before applying, provide complete financial documentation, compare offers from multiple lenders, consider secured loan options, and work with a broker who can access wholesale rates — like Slate Financial.
Compare Your Options
At Slate Financial, we work with 75+ lenders to find you the lowest rate available for your situation. Our rate comparison tool lets you see estimated rates for every product side by side.
Take our Loan Finder Quiz to get a personalized rate estimate in 60 seconds.
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David Bizousky
Founder & CEO, Slate Financial
David R. Bizousky is a financial services entrepreneur and the founder of Slate Financial, a leading alternative lending platform that has funded over $2.5 billion for 10,000+ businesses across all 50 states.