Live market data
Pulled from official U.S. government APIs. Click a card to view the source.
TL;DR
Business loan rates in 1970 range from 6.5% APR (SBA) to 1.15–1.49 factor rates on MCAs. APR is annual interest on a balance; factor rate is total payback (factor × principal). Always compare offers using cents-on-the-dollar (CoD) — total payback minus principal, divided by principal — not just rate.
APR vs factor rate — they're not comparable as-is
APR (annual percentage rate) is what banks and term-loan lenders quote. It's the cost of money expressed yearly.
Factor rate is what MCAs and short-term products quote. It's a multiplier on the principal — 1.30 means you pay back $130K on $100K.
An MCA with a 1.30 factor rate over 6 months is roughly equivalent to a 60% APR. Always convert to APR or to cents-on-the-dollar before comparing.
1970 rate ranges by product
- •SBA 7(a): 6.5% – 11.5% APR
- •Conventional term loan: 8.99% – 24% APR
- •Business line of credit: 9% – 28% APR
- •Equipment financing: 7.99% – 18% APR
- •Working capital: 1.10 – 1.30 factor (approx 25–60% APR equivalent)
- •MCA: 1.15 – 1.49 factor (approx 30–80% APR equivalent)
- •Invoice factoring: 1% – 3% per 30 days
What drives your rate
- •Personal FICO (the single biggest factor on term loans)
- •Time in business (12+ months unlocks meaningfully better pricing)
- •Monthly deposits (consistency matters more than peak)
- •Industry (some industries price 200–400 bps higher due to default rates)
- •Existing debt service ratio (above 12% pushes pricing up)
Pros of low-APR products
- •Lowest cost of capital
- •Builds business credit history
- •Predictable amortization
Cons of low-APR products
- •Slower to fund (5–60 days)
- •Stricter credit and time-in-business requirements
- •Heavier paperwork
Run the numbers
MCA / Factor Rate Calculator
Convert a factor rate offer to total cost, daily remit, and approximate APR. Useful for comparing MCA offers against term loan APRs.
Methodology
Total payback = principal × factor. APR-equivalent ≈ (factor − 1) × (365 / term days). This is an approximation — true APR is slightly higher because daily remittances reduce balance over time. APR is defined per the federal Truth in Lending Act (12 CFR § 1026, Regulation Z). MCAs are typically structured as a purchase of receivables and not subject to TILA APR disclosure, but several states (CA SB 1235, NY S5470) require commercial financing disclosures with an APR-equivalent.
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
How to Read a Loan Factor Rate (and Convert to APR)
Factor rates look smaller than APR but cost more. Here's how to read them and convert to a comparable annual cost.
Business Loan Calculator Guide: What to Calculate Before You Sign
The four numbers every borrower should run before signing — DSCR, total cost of capital, monthly burden, and cents-on-the-dollar.
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.
Sources & references
- Bank Prime Loan Rate (DPRIME)— FRED · Federal Reserve Bank of St. Louis
- Federal Funds Effective Rate (DFF)— FRED · Federal Reserve Bank of St. Louis
- Daily Treasury Par Yield Curve Rates— U.S. Department of the Treasury, Fiscal Data
- Commercial & Industrial Loans, All Commercial Banks (BUSLOANS)— FRED · Federal Reserve
- 30-Yr Fixed Rate Mortgage Avg (MORTGAGE30US)— FRED · Federal Reserve
- Truth in Lending Act, Regulation Z (12 CFR § 1026)— Consumer Financial Protection Bureau
- California Commercial Financing Disclosure (SB 1235)— California Department of Financial Protection and Innovation
- New York Commercial Finance Disclosure Law— NY Department of Financial Services