How Much Money Will It Cost Me To Get My Business Loan?
Thank you for your question. The cost to get a business loan really depends on what type of business loan you’re getting and who your provider is. If, for example, you are getting a business loan from a traditional bank, you may pay an application fee over several hundred dollars and origination fees (if you close on your loan) of 1 – 2% of your loan value.
There are other types of loans that you can get that may be cheaper to get. A business line of credit is one type of loan that generally has very cost-efficient application processes. However, many of these loans are unsecured and come with must higher interest rates – that’s a trade-off that you’ll have to consider.
If you’re looking for a low-interest loan, some of the lowest-interest products available are SBA loans. There are several types of SBA loans, so you’ll need to decide which one is right for you. Additionally, these loans typically have very comprehensive applications and can come with upfront fees for brokers who help to arrange the loans.
In all, you should expect to pay anywhere between 1% – 5% of your total loan value to actually secure a business loan. While costs can be lower than this – for business lines of credit, for example – interest rates for those products are typically several times higher than traditional bank loans or SBA loans.
Best of luck,
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