the loan would be to start a small business and purchase equipment in Iowa. Good credit score of 650. Could get a cosigner if necessary and put about 10% down.
2007-02-12 09:25:37 · 2 answers · asked by Anonymous in Business & Finance ➔ Small Business
Maximum that you should pay is your banks prime rate + 1%.
With your credit score, the ability to put money down etc. you are a good credit risk. Prime rate is the rate that banks charge their best customers. You are very close to that.
Try at all costs not to use a cosigner and certainly don't offer it to the bank - you don't need it. One person guaranteeing this loan is enough - don't make it two.
Average prime rate in U.S. is 8.25% - do not agree to a loan for more than 9.25%. There are lots of bank competing for business right now and you are a good credit.
Good Luck
Dana B.
www.thebarfieldgroup.com
2007-02-12 12:32:49 · answer #1 · answered by planningresult 4 · 0⤊ 0⤋
It all depends upon if it is a secured or an unsecured loan. If it is a secured loan where you put up some collateral then with you crdit score the interest rate should be between 8%-9.5%. If it is an unsecured loan then you are looking at maybe 13.5%-18% and that too if some bank gives you the loan especially if you dont have any previous business experience. You will need to provide a business plan and try approaching the SBA too.
Your welcome.
2007-02-12 09:34:07 · answer #2 · answered by Akbar B 6 · 0⤊ 0⤋