What is a good interest rate on a commercial loans as of September 26, 2024?

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A good interest rate on a commercial loan can vary depending on factors like loan type, borrower creditworthiness, loan term, and market conditions. As of 2024, typical interest rates for commercial loans generally range from 5% to 12%.

Here’s a breakdown of factors that influence the rate:

1. Loan Type:

   • SBA loans (backed by the Small Business Administration) often have lower rates, typically between 5.5% and 8%.

   • Conventional commercial loans from banks may have rates from 6% to 12%, depending on the borrower's risk profile and the terms.

2. Creditworthiness: A higher credit score and solid financials can help secure a lower interest rate, potentially closer to the lower end of the range.

3. Loan Term: Short-term loans might come with higher interest rates but lower overall costs compared to long-term loans.

4. Market Conditions: In times of high inflation or when central banks increase benchmark interest rates, commercial loan rates tend to rise.

A good interest rate in 2024 would likely fall between 6% to 8%, but this can vary based on the factors mentioned