Business Loan FAQ's

How much collateral is normally required to obtain a business loan?

A bank will need to know and be able to trust their own judgment as to how viable your business is likely to be. Sometimes that can be a high hurdle.

Why is more interest paid at the beginning of a loan than the end?

Compound interest and not for simple interest and when the monthly payments are same across the time period of the loan. In the case of the former (Compound interest), the interest is calculated on the outstanding principal at any point in time.

What is the interest rate for business loans?

Typically, rates will be based on the prime rate of interest plus a margin. Rates will vary, however, based on the following:

• Amount of the loan request
• Financial condition of the borrower and guarantors
• Loan fees charged
• Prevailing market interest rates

How often will my APR change?

Business loans have variable interest rates linked to the prime rate. We will review your account once a month to determine if the rate has to be adjusted up or down based on the current prime rate.

When must a loan advance be repaid?

A loan advance must be repaid within the earlier of 12 calendar months after the date on which a loan advance is made, or on the termination date of the Open-End Loan Promissory Note.