What is a good interest rate on a business loan?
The expensive mistake is accepting the first offer with nothing to compare it to. Quordx Capital fixes that by putting 3-7 competing lender offers in front of you from one application.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
What "good" looks like by lender type
Benchmarks from Q4 2025 Federal Reserve data and current SBA caps: **bank term loans carry median rates around 7.2% fixed / 7.8% variable, the cheapest money going, but the strictest underwriting. SBA 7(a) loans currently run roughly 10.5%-14% variable depending on loan size (caps are Prime + 3.0% to + 6.5%; Prime sits at 7.50%). SBA 504** loans for fixed assets carry effective fixed rates typically in the 5-7% range. So a "good" rate is the low end of whichever tier your profile puts you in, and the only way to know is to make lenders compete.
Products where strong profiles get the best pricing
SBA 504: Effective fixed rates typically 5-7% for real estate and major equipment. Best rate on the board for fixed assets.
Business term loans: Bank-grade borrowers see roughly 7%; online pricing varies widely. Best for general needs with fixed payments.
Business lines of credit: From ~7.2% at banks; interest only on what you draw. Best for flexible access at low carrying cost.
How Quordx Capital Works
One 5-minute application goes to Quordx Capital's matching engine, which scores you against 50+ vetted lenders and returns 3-7 ranked offers, so you're comparing real prices, not advertised teasers. Documents upload once; lender decisions arrive in 24-48 hours; funding typically follows in 3-7 business days.
What to Expect
Every offer comes with the full cost disclosed, rate, fees, total repayment, so you can judge "good" with the whole picture. If your best available rate is high, Quordx Capital will say so honestly and tell you whether waiting and strengthening your profile beats borrowing now. Comparing costs you nothing and commits you to nothing.
Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
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Important Disclosures
Quordx Capital is a business funding broker, not a lender. We facilitate introductions between U.S. small and medium-sized businesses and lenders or capital providers in our network. All credit decisions, funding amounts, rates, fees, repayment terms, and timelines are determined solely by individual lenders based on their own underwriting criteria.
Funding figures and timelines shown on this page are illustrative and represent ranges within our lender network, they are not guarantees and individual outcomes may vary based on business profile, industry, time in business, revenue, credit history, and lender availability. Not all applicants qualify for every product.
The initial inquiry does not impact your personal credit score. Some lenders may perform a hard credit pull during underwriting; Quordx only authorizes such checks with your specific consent for the lender presenting an offer. Applicants are protected under the Equal Credit Opportunity Act (ECOA) from discrimination based on race, color, religion, national origin, sex, marital status, age, or because all or part of an applicant's income derives from any public-assistance program.
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