How do you save money on business loans.
Armani Khoury
Interest rates start @ 6.5% l Business Loans l SBA l Line of Credit l Asset Based | Commercial Real Estate I Hard Money l Option Consultant
When obtaining a business loan it is vital that you know your options and know the loan you are seeking.
Merchant cash advance you will see when you google "business loans". It is just that a cash advance. Either on your ACH or your credit card sales. They tell you that interest rates are 15%-30% or that this loan does not have a interest rate.
Merchant cash advance has a factor rate. If for example you get a loan for $100,000 and your factor rate is 1.35. That means you are paying back upwards$135,000. Usually this is for a maximum of 12-18 months. Essentially you are paying 3.5% a month. If you have a loan for 12 months your interest rates before fees is over 45%, It is a daily payment of $511.36 Monday through Friday. $511 x 5 = $2,555 a week and $10,220 a month or more (this is just a estimate).
If you could get a "true business loan" with monthly or bi-weekly payments would't that make more sense. Yes, you have to have strong credit and financials have to be strong.
Example: $100,000 loan @ 13% for 3 years,. Monthly payment around $3,200.
Would you pay $10.220 a month or $3200 a month.
Get pre qualified.
Cheers,
Armani Khoury