There are many factors that go into obtaining a commercial business loan. The first thing you want to do is shop around so you can find the best rate possible.
It all comes down to the amount of risk for the bank. If a business has proven creditworthiness in the past than the bank is likely to look at the business as less of a risk than a business that has had some upsets to their payment history in the past. A good strong credit history is probably the single most influential factor when it comes to what type of loan rates will be available to a business.
Positive Cash Flow
A business that can show through financial records that they have consistently had a positive cash flow is very likely going to be offered a decent rate. Commercial business loan rates are best described as a point system where the business is rewarded with a lower interest rate because they have made good sound financial choices.
Sometimes the commercial business loan rates that are offered depend entirely on the financial institution you are doing business with. Rates can sometimes vary by one or two points from one financial institution to another. That is why it is very important to shop the rates for he best offer.
Rates can literally change from month to month so it is important to keep your research up to date so that you can save the most money possible. Just a half a percentage point can make a huge difference in the life of the loan.