You do the math, we provide the fuel. See what it will cost to launch your startup.
Startup business loan payments are determined by three main factors: loan amount, interest rate, and term.
Your loan amount depends on the type of business you’re starting, how much related experience you have, and what your credit score is. Your credit score also impacts your interest rate – generally speaking, the higher the score, the lower the rate. Of course, you’ll also see an interest rate variance between loan options. For example, the median interest rate on an SBA loan is typically 6-9%, while the rate for a credit card can be up to 12%.
Since there are several startup business loan options available, term lengths differ. For example, you can expect to pay off a term loan over 1-5 years or opt for a credit card that will give you revolving access to cash.
It’s free to see your startup business loan options and apply through Lendio, but many lenders do charge application fees. If you’re shopping around and paying multiple application fees, the costs will add up. You’ll also want to about origination fees so you can better determine the total cost of your loan.
As with any bill, you’ll save money and boost your credit score if you make your minimum payments on time. Calendar your due dates or, better yet, set up automatic payments.
Many lenders offer a discount for paying off your loan early, while others have prepayment penalties. Ask for a list of any potential discounts or penalties so you can choose the repayment schedule that works best for you.
Another way to save a few bucks on your loan is to secure your startup business loan with collateral. Cars, equipment, real estate, and more can be used as collateral.
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