Interest rates & terms: what to actually expect
Rates aren't a single sticker price — they're built from a base rate plus a margin that reflects how risky your file looks. Here's how to read them.
Most small-business loans are priced as a base rate (often prime) plus a spread. The spread is where your file's risk shows up: stronger coverage, security, and experience generally earn a tighter margin.
What drives your rate
- Perceived risk of the business and the owner
- The security backing the loan
- Loan size, term, and the lender's own pricing
Terms matter as much as rate
Amortization length changes your payment — and therefore your DSCR — often more than a small rate difference does. A longer term lowers the payment and improves coverage, at the cost of more total interest.
The move
Model your plan at a realistic rate assumption and show it. A file that clearly services its debt at a conservative rate is what earns you a better one.
See where your plan stands
Paste the plan you have into the free Scanner. It scores you against the eight criteria Canadian lenders use — in about thirty seconds, no account, nothing leaves your device.
Score my plan — freeLenderReady is an educational service, not a lender, broker, or financial advisor. Lending criteria vary by institution and change over time; treat this as a starting point, not a guarantee.