Banks change and adjust their interest rates from time to time, so it’s hard to say which bank has the absolute lowest business loan rates.
That said, we consistently see very low interest rates from Bank of America and Wells Fargo, even when compared to other big banks.
Unfortunately, we can’t give you a specific average interest rate for business loans―because the data simply doesn’t exist. (Trust us, we’ve tried to find a reliable stat many, many times.)
And frankly, the average interest rate might not be as helpful as you think. After all, interest rates depend on your loan type, repayment terms, loan amount, borrower qualifications, and more. So comparing interest rates on a $4 million business loan with a 10-year repayment term and a $10,000 business loan with a 6-month repayment term really won’t tell you that much.
We can give you some general ranges though. Bank loans generally have starting rates under 8%, with loan rates maxing out in the high 20s. Business loans from alternative lenders usually start and end at a slightly higher range―think 9% to 40% or so.
(Other types of financing, like merchant cash advances and invoice factoring, don’t use interest rates―but they almost always cost way more than term loans.)