10 Factors That Impact Your Business Loan Rate

Let’s dive into the nitty-gritty of what affects your business loan rate. Buckle up, because this is where you get the edge over your competitors and save some serious cash.

1. The Finance Type: Secured business loans usually come with lower interest rates because lenders love a good security blanket. A fixed-term loan might have a different rate than an ongoing line of credit. Know what you’re getting into!

   
   

2. Type of Security: What are you putting up as collateral? If it's a shiny, new vehicle, expect better rates than an old rust bucket. The newer and better condition your asset is in, the lower your rates will be.

   
   

3. Time in Business: How long have you been in the game? If you’ve got a few years under your belt, lenders will cut you some slack with lower rates. Newbies, hang tight—we’ll get you there.

   
   

4. Industry: What’s your business field? Some industries scream stability (think less risky), and lenders love stability. If you’re in a higher-risk industry, you might see higher rates, but hey, we’ve got your back.

   
   

5. Whether You're Asset-Backed: Got property? Lenders will smile upon you. Personal guarantees backed by assets usually mean lower rates. No assets? No problem, but expect the rates to reflect that.

   
   

6. Credit Score: This is your report card, folks. A score below 500 can be a bummer, but it’s not the end of the world. Higher scores mean lower rates. It's time to get those scores up!

   
   

7. Credit Defaults and Dishonours: Defaults, court orders, and insolvencies are like red flags to lenders. If you’ve got these on your record, expect higher rates. Keep those accounts in the green!

   
   

8. ATO Lodgements Up to Date: Owe the taxman? Not good. If you’re up-to-date with the ATO, lenders will reward you with better rates. If you’ve got manageable arrears, you might still qualify, but at a higher rate.

   
   

9. Loan Amount and Duration: The size and length of your loan matter. Bigger loans or longer terms can mean higher rates due to increased risk. But don't worry, we’ll find the best fit for you.

Ready to score the best rates for your business loan?

Contact Motive Finance today and let’s break it down together!

Book a free strategy call with me here.