A business term loan is the classic funding product: borrow a set amount, repay it in fixed installments over a set period. It's ideal for planned, one-time investments. But the rate you're quoted depends entirely on which funder you ask — and a single quote gives you nothing to compare it against. Here's how to get the best term-loan rate.
Why one term-loan quote isn't enough
Term-loan pricing varies widely by funder for the exact same borrower. One quotes 12% APR, another 22% for the identical file — based on their cost of capital, risk appetite, and how badly they want the deal. Take the first quote and you have no idea if it's good. The only way to know is to find the funders whose guidelines you meet.
One funder = one rate, no benchmark
You get their quote with nothing to compare it to. Is 20% APR good or bad for your file? You can't tell — and they have no reason to sharpen it.
the right funders = the rate gets bid down
Competing offers reveal your true best rate and force funders to beat each other. We negotiate the winner down further. Same loan, lower cost.
Going to one funder vs. The Broker Shop
| What matters | Going to one funder | The Broker Shop |
|---|---|---|
| Rate | Their one quote | Bid down across the right funders |
| Loan amount | Their cap | Matched to your need, $10K-$2M |
| Qualification | One box | Funders for 600+ credit and up |
| Who negotiates | No one | We do, across the right funders |
| Cost to you | Varies | $0 — the funder pays our fee |
The same term loan, at a lower rate
Term loans are commoditized — the difference between a great rate and a bad one isn't the product, it's whether funders had to compete for your business. One quote gives them all the leverage. Matching you to the right funders gives it to you.
The Broker Shop matches your file to the right funders at once, surfaces competing offers, and negotiates the best one down further. Funded in 3-7 days, free to you.
Get Competing Term-Loan Offers →What actually determines your cost
For a term loan, these factors decide your rate:
- How the right funders — the #1 driver; one quote has no benchmark.
- Credit score — 600+ opens most term loans; higher earns lower rates.
- Revenue and time in business — stronger, longer history means better pricing.
- Loan term length — shorter terms usually carry lower total cost.
- Whether anyone negotiates — a broker pushes the winning quote down further.
Compare how term loans work, or MCA vs. business loan.