It depends on the loan type. Equipment financing and many term loans are secured by collateral. Lines of credit and some working capital loans may be unsecured. Secured loans generally offer better rates and higher approval chances.
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Frequently Asked Questions
Related FAQs
What are current commercial business loan interest rates?
As of 2026, rates typically range from 4.99%–9.5% for well-qualified SBA and bank loans. Alternative business loans and merchant cash advances can range from 10%–36%+ APR. Rates depend on your credit, revenue, industry, and loan type.
Can I get a business loan with bad credit?
Yes. While strong credit helps you get better rates, we work with many businesses that have imperfect credit. Alternative financing options are available, though they usually come with higher rates and shorter terms.
How do commercial loans differ from personal loans?
Commercial loans are based mainly on your business’s financial performance (revenue, cash flow, years in operation), while personal loans focus on your individual credit and income. Commercial loans usually allow much larger amounts and have different tax treatment.