What drives your rate
- Lender type — banks, credit unions, government programs, or online lenders
- Product — secured term loans cost less than unsecured advances
- Term — shorter terms often have higher annualized costs
- Your risk profile — credit, time in business, and revenue consistency
- Collateral — secured loans usually carry lower rates
APR vs. factor rate
The annual percentage rate (APR) includes interest and most fees over a year. A factor rate is a flat multiplier used by merchant cash advances. To compare them fairly, convert both to the total amount you will repay and how long you will take to repay it.
How to lower your cost
Kacu shows you the full cost upfront. Prequalify here to see real offers without affecting your credit.
- Improve your credit score before applying
- Keep healthy average daily bank balances
- Offer collateral where appropriate
- Choose the shortest term you can comfortably afford
- Consolidate expensive existing debt
Frequently asked questions
What is a good interest rate for a business loan?
It depends on the product and your profile. Bank and government-backed loans are typically lowest; online term loans and lines of credit are moderate; merchant cash advances are usually highest. A good rate is one where the return on the money clearly exceeds its cost.