Understanding APR on a business line of credit

APR expresses the cost of credit on an annualized basis, which makes it usable for comparing offers with different structures. It is a more complete figure than a nominal interest rate because it can incorporate charges beyond interest, depending on the product.

For that reason, when we advertise pricing we say APR rather than interest rate. Our advertised pricing is APRs starting at 8.99%.

An advertised starting APR describes the lowest pricing available to the most qualified applicants. It is not a quote, and it is not a promise.

Your actual APR depends on creditworthiness, underwriting, approval, and the applicable terms of the facility. Not all applicants qualify for the lowest advertised APR, and the gap between the advertised figure and an individual offer can be meaningful.

Maximum APR, whether pricing is fixed or variable, origination or draw fees, repayment schedules, draw periods, collateral, and personal guarantee requirements are not published on this site. Those are terms of a specific facility and are disclosed in the agreement that applies to you.

Filling those gaps with typical industry values would be inventing terms. If a number matters to your decision, ask for it in writing before you sign.

Ask how APR is calculated for your facility, whether it changes over the life of the line, what fees exist and when they are charged, and what happens to pricing if you draw and repay repeatedly.

Those four answers tell you more about the real cost of a line than any advertised headline rate.