Short Term Loan Interest Rates | CitrusNorth
How your short-term loan payments are calculated
Access to working capital can be a great way to keep your business afloat with short-term loans. To give you an idea of the monthly payments that your business will have to pay, our short-term loan calculator considers the principal factors that affect payments: interest rates, loan term, loan amount, collateral, and loan term.
The Short-Term Loan Amounts
The amount of your short-term loan will depend on your business’s revenue, credit score, and previous experience in the field. It also depends on how you intend to use the loan. There are two options for financing a loan: $2,500 and $250,000.
Short-Term Loan Interest Rates
Short-term loan interest rates average between 8 and 13 percent. They are usually fixed. Fixed rates are great because they remain consistent over the life of your loan. This means that you will always know how much your monthly payment will be. A solid credit score is essential for most interest rates. The lower your interest rate will be, the better.
Short Term Loan
You will find that short-term loans are generally shorter than other loans. They typically last between 1 and 5 years and can be backed by collateral like a vehicle, property, or other tangible assets. You can often get a better deal by putting up more collateral.
Let’s get specific (about your rates and terms)
Instead of spending hours searching rates online that might not apply to your situation, spend 15 minutes researching the rates and products available to your company. You have access to 75+ lenders with one application. This means that each lender takes an average of 12 seconds. There is no better investment than this… for your time.
Take into account potential fees
Short-term loans may have two fees: origination fees and application fees. Here are the facts.
While you won’t be charged for reviewing and applying for loan options through CitrusNorth, other lenders might charge for your application. Ask about application fees if you are comparing marketplaces or lenders.
Some lenders charge origination fees when a loan gets funded. To help you estimate the cost of your short-term loan, ask your lender if they have one.
Four Steps to Lower Short-Term Loan Costs
- Pay your minimum monthly payments on time. This will avoid late fees and increase your credit score.
- Talk to your lender if you feel you might miss a payment.
- Schedule automatic payments. You can also set reminders on your calendar to remind you when you need to make automatic payments.
- Check with your lender to see where they stand on early payments. While some lenders may offer a small discount for early repayment, others could impose prepayment penalties. Ask your lender before you rush to make your advance payments.
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