the loan would be for $40 000…so how much would we weight loss acomplia paying on interest.. what %????? this is for a restaurant and we plan on paying it back after the first year…
How Much Interest Would Be Charged On A Short Term Loan For A New Business?
2 Responses to “How Much Interest Would Be Charged On A Short Term Loan For A New Business?”
Leave a Reply
The acceptable rate depends on your need of the loan. In some cases you are fine with 10% and in other cases even 30% will do the trick. To avoid this type of jam in the future consider building a business profile. You will have a lot of financing options as alternative financing is business credit based.
There are companies that help you build a business credit profile, search for them via google or yahoo. Type “strong business credit” (just like that in quotes) to find a service right for you. Expect to spend around $1000 for the help.
Good luck with the loans.
Ilya Bodner
Small Business Owner
I’m not sure about loans to restaurants and whether or not you would be able to get it in the first place.
But right now the prime interest rate is 7.25%. Expect the spread to be slightly above that. Maybe you could get away with 10-12% interest rate? Depends on the risk the bank potentially sees in lending you the money. The riskier it is for them, the higher the rate you will be charged.
You may want to wait on the loan for a little longer. There is a high probability the Fed will cut rates by another 0.50% in the coming months. This will make borrowed money cheaper for you!
Cheers