Live market data
Pulled from official U.S. government APIs. Click a card to view the source.
TL;DR
Choose a bank if you have 12+ months operating, 650+ FICO, strong financials, and 30+ days to wait — rates run 6.5–11% APR. Choose an alternative lender if you need funding in under 7 days, have 500+ FICO, or can't pass bank DSCR — rates run 9–80% APR depending on product.
When a bank wins
- •Lowest cost of capital
- •Long-term real estate or expansion
- •You meet 2-year tax return + DSCR + collateral requirements
- •30–90 days is acceptable timeline
When an alternative lender wins
- •You need funding in under 7 days
- •You have under 2 years operating
- •FICO is 500–650
- •You bank with revenue-only deposits and lumpy cash flow
- •You've been declined by a bank but have strong revenue
Pros of banks
- •Lowest APRs in market (6.5–11%)
- •Builds long-term banking relationship
- •Larger loan sizes possible
- •Government-backed SBA programs
Cons of banks
- •30–60 day approval timelines
- •Strict credit and DSCR requirements
- •Heavy paperwork
- •Decline rate above 70% for small business applicants
Pros of alternative lenders
- •24-hour funding possible
- •Approves down to 500 FICO
- •Lighter paperwork
- •Underwrites revenue, not net income
Cons of alternative lenders
- •Higher APRs (9–80%)
- •Daily or weekly remittance
- •Shorter terms (3–24 months typical)
- •Fewer loans build business credit
Run the numbers
Business Term Loan Calculator
Standard amortization: fixed APR, fixed weekly payment. Same formula banks and SBA lenders use.
Methodology
Standard amortization formula: P × r / (1 − (1 + r)−n), where r is the monthly rate (APR / 12) and n is the term in months. APR is the annual percentage rate as defined in the federal Truth in Lending Act (12 CFR § 1026.22). Actual lender quotes may include origination fees that increase APR.
Compare Two Offers (APR-equivalent)
Paste any two offers — MCA, term loan, line of credit — and normalize them to the same yardstick.
Lowest APR-equivalent wins on cost. Cents-on-the-dollar (CoD) shows total cost per dollar borrowed regardless of term length.
Related questions
Related guides
MCA vs Term Loan: Which is Right for Your Business in 1970?
Side-by-side comparison of merchant cash advances and business term loans — speed, true cost, qualification, repayment structure, and which fits your situation.
Business Loan Rates Explained (1970)
APR, factor rate, and total cost of capital — what the numbers actually mean and how to compare offers across products.
How to Qualify for a Business Loan in 1970 (Full Requirements)
The exact requirements lenders check, every document you need, common reasons for decline, and how to position your file for a same-day approval.
Sources & references
- Small Business Credit Survey— Federal Reserve Banks
- Bank Prime Loan Rate (DPRIME)— FRED · Federal Reserve Bank of St. Louis
- Commercial & Industrial Loans, All Commercial Banks (BUSLOANS)— FRED · Federal Reserve
- Daily Treasury Par Yield Curve Rates— U.S. Department of the Treasury, Fiscal Data
- SBA 7(a) and 504 Loan Program data— U.S. Small Business Administration