Another Local Business Gets Financing to Grow
July 19, 2016
Local Coffee Roaster Secures Financing
August 22, 2016
By: John Patterson CFP ®
If you caught all your Pokemon and you’re ready to shop for a business loan, August should be a great month to find a good deal.
Interest rates continue to be very stable this summer with no expected changes by the Federal Reserve Board who don’t have any scheduled meetings this month.
The prime rate remains unchanged at 3.5% and the 10 year T-bill has been very stable. Most of our banking partners reported no change to their best case pricing and a few reported a slight decrease in their best rates by 0.25%.
Commercial Real Estate (owner occupied) Interest rates for commercial loans are still fantastic right now.
– Best loan right now is a 10 year fixed at 3.60% which is based on a 20 year amortization. Close behind are two other banks offering a 3.78% and a 3.85% 10 year fixed rate loans also with a 20 year amortization?
– Average pricing from top tier lenders is a 10 year term loan with a 5 years fixed rate anywhere from 4.75% to 5%. Amortization on these loans can go up to 20 years.
Commercial Real Estate (SBA Pricing)
– The best SBA loan is a 20 year fixed loan at 4.52%. There is also a 10 yr fixed rate at 4.99% which is based on a 25 year amortization.
– The best pricing on an SBA 7a loan variable rate loan currently remains a 25 yr term/AM loan offered at rate of 5%. The average SBA 7a loan is a 25 yr term/AM loan being offered at a variable rate of 6.25 % (WSJ Prime Rate +2.75%).
Machinery & Equipment Loans
Lenders are offering lots of options when it comes to how long you want your M&E loan to last?
– If you can handle a short term loan the strongest is a flat 3 year term/AM with a fixed rate of 3%. Average pricing from a good lender is going to be a 5 year term/AM with a fixed rate of 4.5%. If you need to go SBA the best pricing is currently a 10 year fixed rate at 5.5%.
Working Capital Loans
– Assuming you are not looking for a 0% introductory rate credit card the best working capital loan terms are a 1 year line of credit at 3.75%. If you don’t want to be in a situation where you need to renew the loan every 12 months, the best loan program is a 5 year term/AM with a fixed rate of 5.5%. If you need to go the SBA route most SBA lenders are going to be at a 6.25% variable rate with a term of 7 to 10 years.
Also new in the market are small lines of credit for businesses with great credit but not showing a lot of income. The lines of credit range from $5,000 – $50,000 and have a rate as low as prime +3%.
The above pricing was provided by The Best Business Loans in Town which is a local on-line marketplace, using technology to dramatically simplify the execution of shopping for business loans. They are the first stop one shops for business loans. This information was gathered from the best banks and lenders in the Florida market.
To see what terms you or your Clients might qualify for, please go to our website www.tbblit.com. Finding out is very fast and easy and normally takes 10 minutes or less.
