There is no single business loan rate — what you pay depends on the product, your credit, and your revenue. Here is a realistic picture of the 2026 landscape so you can spot a fair offer.
Why there is no single rate
Business funding spans products that price completely differently. A bank term loan quotes an annual percentage rate; a merchant cash advance quotes a factor rate; a line of credit quotes a variable rate plus fees. On top of that, your credit profile, time in business, revenue, and industry all move the number. So the honest answer to what is the rate is always it depends — but the ranges below give you a yardstick.
Rough 2026 ranges by product
As a general guide, expect something like:
- SBA loans: roughly 10 to 14% APR, the lowest mainstream option
- Bank term loans: roughly 9 to 18% APR for qualified borrowers
- Online term loans: roughly 15 to 45% APR depending on credit and term
- Business lines of credit: roughly 12 to 30% APR on drawn balances
- Equipment financing: roughly 8 to 25% APR, secured by the asset
- Merchant cash advances: factor rates around 1.10 to 1.50, not an APR
These are ballpark figures, not quotes. Your actual offer depends on your file, and a strong file can beat these ranges while a weak one may exceed them.
What drives your rate
Four levers move your pricing most: personal and business credit, time in business, revenue strength and consistency, and the amount of existing debt on your books. Improve any of them and your rate tends to fall. Collateral helps too — secured products like equipment financing almost always price below unsecured advances, because the lender has something to recover.
How to get the best rate available to you
The single most effective move is to create competition. One lender gives you one rate with no benchmark; multiple lenders bidding for your file pushes pricing down. That is the core of what a broker does — submit your application once and let 50+ lenders compete.
Beyond that, apply when your statements look strong, pay down stacked debt first, and always compare on total payback and the real payment, not just the quoted rate. Checking your options won't affect your credit score.
See what you qualify for
One 2-minute application reaches 50+ competing lenders. It's free, and checking your options won't affect your credit score.
See What I Qualify For →The bottom line: Business loan rates range from around 10% APR on SBA loans to factor rates of 1.10 to 1.50 on advances — your product, credit, and revenue set the number, and putting lenders in competition is the surest way to lower it.