30 Nov What is your interest rate?
The interest rate for a loan is affected by the risk associated with the project. Typically, the interest rate will be higher for start-ups than for existing businesses. There are many ways in which you can reduce your initial interest rate, including:
- Making a higher personal investment in your project,
- Providing collateral valued close to or above the value of your loan,
- Demonstrating diligent research into your business, market and industry,
- Demonstrating prior experience in your industry or previous entrepreneurial successes.
Also, during the annual review of your loan, CFEK may offer your business an interest rate discount where we perceive our risk to be lower than when you first received your loan. Factors that help us to recognize reduced risk can include regular communication and strong financial performance.