What are small business loans? To put it briefly, small business loans are loans that are specifically designed in order to cater to the monetary and financial needs of small businesses. The interest, the amount that can be loaned and the time table to pay such loan are all in favor of small businesses. The interest rate ranges from a low rate of 4% up to a high rate of 15%. The ratio behind these low rates is that small business or starting out businesses will not have high or big funding in order to pay back the amount loaned. If the interest rate is too high then the small business cannot hope to pay such amount. As such, these low rates in order to help these small businesses follow through with their dealings.

The amount that can be loaned has also been personalized with regard to small business loans. Depending on the capital and assets of a business is the amount that the business owner or the business itself can loan from a bank or a lending institution. This guarantees that the small business will not commit “over loan” or the act of loaning a high amount that is very hard to pay back with the business’ current finances. There is a predetermined floor limit and a ceiling limit for small scaled businesses. This has been the practice of banks and lending firms for the last couple of decades since it has been backed up by adequate research and statistics gathered by the experts.

The time table for these small business loans usually range from 60 days up to 180 days depending upon the amount loaned. If the amount loaned is minimal then it will necessarily have a 60 day payable period. If the amount is high then it will have the maximum payable period of 180 days. This time table has been carefully studied by financial experts in order to cater to the needs and capacities of every small business owner nowadays. The time frame to pay the amount is in proportion with the capacity of the small scaled business’ ability to pay vis-