What is the average interest rate on a business loan?

Last updated May 2026 · Reviewed by David Chen
Quick Answer

Average business loan interest rates in 2026 vary by product: SBA loans 7-12%, traditional bank loans 6-25%, online term loans 8-30%, equipment financing 6-25%, lines of credit 8-30%, MCAs use factor rates 1.10-1.49 (effective APR 30-100%), invoice factoring 1-5% per 30 days.

Key Details

  • SBA loans: 7-12% APR
  • Bank loans: 6-25% APR
  • Online term loans: 8-30% APR
  • Equipment financing: 6-25% APR
  • Line of credit: 8-30% APR
  • MCA: factor 1.10-1.49 (30-100% effective APR)
  • Invoice factoring: 1-5% per 30 days
Answer by David Chen — Senior Business Funding Editor
12+ years in alternative lending. $200M+ underwritten.

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