Current ranges by product
| Product | Typical cost | Pricing basis |
|---|---|---|
| Bank term loan | 7% to 11% APR | Prime plus margin |
| SBA 7(a) | 10.5% to 14.5% APR | Prime plus 3% to 6.5%, capped |
| CDFI loan | 8% to 25% APR | Fixed APR |
| Online term loan | 25% to 100% APR | APR or factor rate |
| Online line of credit | 8% simple interest to 60%+ APR | Simple interest or weekly fee |
| Equipment financing | 8% to 30% APR | APR or factor rate |
| Invoice factoring | 0.5% to 3% per 30 days | Discount fee |
| Merchant cash advance | 50% to 200%+ effective APR | Factor rate 1.1 to 1.5 |
Ranges reflect published lender terms and typical approvals as of November 2026; verify current figures with each lender.
The fees that get added
- Origination fee: 1% to 5% of the loan, deducted from proceeds.
- Draw fee: 1% to 2% per draw on some lines of credit.
- SBA guarantee fee: 0% to 3.75% of the guaranteed portion.
- Late and NSF fees: often $25 to $50 per occurrence; matter with daily debits.
- Prepayment: some lenders waive remaining interest; factor-rate products usually do not.
How to compare apples to oranges
Convert every offer to two numbers: APR and total dollars repaid. APR captures the annualized cost including fees; total dollars shows what a short, expensive loan really costs versus a longer, cheaper one. Our factor rate calculator handles the conversion for MCAs and factor-priced loans.
What moves your rate
In rough order of weight: personal credit score, months in business, average bank balance and deposit consistency, existing debt, industry risk, and collateral. A 60-point credit improvement or six more months of history can move you an entire lender tier, which is worth more than negotiating with the lender you have.