Business Loan Rates Overview
The term business loan rates means the interest rates at which the business loans are provided by the lenders to the borrowers. The business loan rates are the most important part of the business loans. Basically there are two kinds of business loans with regard to interest rates.
The interest rates of the business loans are very important, as the payments of these loans normally depend on the interest rate of that particular business loan. The interest rates of business loans could be decided by a variety of factors.
For example, the interest rates of the auto loans are decided by the following factors:
Age of Vehicle
Term Period of the Loan
Fixed Rated Business Loans
The fixed rate business loans are those business loans, that have a fixed rate of interest. In these loans, the interest rate stays the same throughout the entire period of the loan.
Variable Rate Business Loans
The variable rate business loans are those business loans, whose interest rate changes after a certain point of time. The change in the interest rate in such loans is determined before the loan is provided, by an agreement between the lender and the borrower.
There are certain business loans, that are a combination of the fixed rate and floating rate. In such loans, the interest rate stays the same up to a certain point, at the beginning of the loan. Afterwards, the interest rate becomes variable for the rest of the term of the business loan.
Last Updated on : 29th July 2013