What are the typical interest rates for startup business loans?

Interest rates for startup business loans generally depend on various factors such as the financial institution, type of loan, the applicant’s creditworthiness, and the business's growth potential.

• Typical Starting Rate: The starting interest rate for loans for new businesses is usually around 9%. This is the baseline rate that the applicant can expect.
• Secured vs. Unsecured: Loans that have collateral, such as property, backing them tend to have lower interest rates. Unsecured loans that do not utilise collateral usually have higher interest rates.
• Business Factors: Considerations like the type of industry, growth outlook, products/services offered, and financial projections may affect the interest rate a startup is offered.
• Applicant’s creditworthiness: The interest rate can be determined based on an applicant’s personal credit history, income levels, and track record of past repayments.