Get a short term loan without doing any long division. Just plug in some numbers and we’ll do the math for you.
Short term loan payments are determined by four key factors: loan amount, interest rate, term, and collateral.
Your loan amount will be determined by your business revenue, business history, credit score, and experience in your field, as well as how you plan to use the loan. You can finance as little as $2,500 or as much as $250,000.
Interest rates for short term loans average 8-13% and are typically fixed. Fixed rates are awesome because they stay consistent throughout the life of the loan, so you always know exactly how much your payment will be. As with most interest rates, a hearty credit score helps – the higher your score, the lower your<a href=”https://www.lendio.com/blog/small-business-tools/business-loan-interest-rates/> interest rate</a> will likely be.
Short term loans have, you know, shorter terms in comparison to other loans. Most of them are 1-5 years and are backed by collateral such as a vehicle, property, or other tangible asset. Putting down more collateral often helps you get a better deal on your loan.
It’s always free to apply for your short term loan through Lendio, but many lenders will charge you application fees. If you’re shopping around, avoid surprises by asking about fees before you submit your application.
And while you’re at it, ask about origination fees too – knowing how much your origination fee is can help you determine the total cost of your loan.
Here’s one simple rule for keeping your loan costs in check and boosting your credit score: make your minimum payment on time every month. Ensure that you never miss a payment by calendaring your due dates or setting up automatic payments.
You should also talk to your lender about any potential penalties or discounts that may apply to your loan. For example, some lenders have prepayment penalties while others will offer you a modest discount for paying off your loan early.
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