Securing Low Commercial Loan Interest

Commercial loan interest is the money that you pay on a set schedule for the term of your commercial loan. Although the market will determine the average prime interest rates that you will have to choose from, there are a few things that you can do in order to secure a low commercial loan interest.

What you can do

Make sure that your credit history is good. This will allow you to shop for loans at the prime interest rate and not on the sub-prime market.

  • If you have a profitable business your interest rate will be lower. Your profits will pay back the lender, therefore the more profitable your business the less risk you are to the lender.

  • Have tangible business assets. If you default on your loan, the lender will collect your assets. Having more assets reduces the risk that the lender will end up with nothing.

  • Shop around. Look for annual interest rates, as opposed to monthly or quarterly rates.