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Fixed-Interest Small Business Loans

The fixed-interest rate business loan is similar to a traditional bank loan in that the interest rate used to compute how much your business will pay is known up front. It is a merchant loan and is based on future credit card sales.

But, the difference between this merchant cash flow loan based on fixed interest rate and a traditional bank loan is that the payback amount each day will vary with sales, typically credit card sales.

Interest rates are typically a bit lower than those of a fixed-term business loan or a business cash advance, as you can see on this loan comparison. Personal and business credit ratings, credit history and payment history requirements are higher for this program than the fixed-term loan or a business cash advance.

For an assumed six month payback term $10,000 loan would require a payback of $11,200 (varies somewhat depending on the state), though this amount varies depending on how long the loan actually takes to pay back, and on the original loan terms. To find out what your company's terms would be specifically, you can apply now at no cost.

Basic Requirements

In order to qualify, some basic needs must be met:

Must be a corporation, LLC, LLP formed and operating in the U.S
Operating for 12 months or more
Credit card processing for at least the past 6 months, with volumes over $5,000 per month
Owner has social security number
Must be a loan to the business
Consistent checking account activity
FICO score 650 or better (can be lower for certain companies with very large cash flow)
Separate business location (not home based)

Industries That Qualify Most Easily

Main Street small, growing businesses with walk-in customers and many transactions.

Restaurant, retail, automotive repair, spa, salon, dentist, cosmetic surgeons.

Businesses With These Characteristics Are More More Likely To Be Approved For a Business Cash Advance

FICO score below 600
Low balances in checking account
In business less than one year

Learn more about the next steps

Documentation required for a Fixed-Interest Business Loan
The next steps for obtaining a Fixed-Interest Business Loan

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Advantages of Fixed-Interest Loan

Fixed-Interest Loan for small businesses is typically the lowest interest rate when making a loan comparison to the rest of our portfolio

Fixed-Interest Loan payback term may vary because the payback is based on a percentage of your sales

Fixed-Interest Loan requires better credit rating than for other programs in the Cash Federal portfolio