Top 7 Reasons Why Lenders Reject Business Loan Applications
                     What is the typical interest rate on a 
business loan?
The Basics of Business Loan
• A business loan is a quick solution to meet 
financial obstacles in business. A business 
at every point of sustainment and 
development needs funds. It can be for 
infrastructure, development, expansion, 
projects, working capital, and labor. Start-
ups and small businesses are not into too 
much revenue and they need some source 
of funding. That is when a business loan 
comes into play. You can have a hassle-
free and burden-free business loan with a 
low rate of interest. There are various ways 
in which you can try to get a low 
business loan interest rate. This will 
reduce your EMI for the month as well as 
keep the total cost of the loan low. 
What is the typical business loan interest 
rate? 
• A business loan comes with an 
additional interest rate that is paid 
along with the principal amount. This 
rate is subject to various factors, like 
income, credit score, business 
stability, and the rest of the financial 
institutions. It is not a fixed 
component and will keep changing as 
you compare it with other financial 
institutions. A good rate of interest is 
attained when the risk of repayment is 
low. It is easy to manage the low EMI 
with a low business loan interest 
rate. 
Factors affecting the rate of interest
• Business revenue: A business that 
generates a good amount of revenue 
will always get a low business loan 
interest rate. A stable revenue 
means low risk, and then the rate of 
interest is also the best as compared 
with other rates. If you want a low 
rate, show the positive cash flow of 
your business to the loan provider. It 
will help in negotiations for a better 
rate. 
Income • Business stability: Business stability 
and the market presence will be 
checked to offer a rate of interest. If 
you need a low business loan 
interest rate, you need to show some 
stability and the initiative that you are 
working to grow. 
• Business credit score: The 
credit score of a business will be 
checked before a loan provider decides 
the rate of interest. If your business is 
new and has not come up with enough 
credit, your personal credit score will 
be checked. Business owners will be 
required to show their credit score. A 
low business loan interest rate will 
help you with an affordable loan and 
make borrowing easy. 
Clix Capital Services Private Limited
 Address: 4th Floor, Kailash Building, Kasturba Gandhi Marg, Connaught Place, New 
Delhi-110001
 Call us: 1800 200 9898
 Email us: [email protected]
 Website: https://www.clix.capital/business-loan-calculator/