Adjustable Rate
An adjustable rate is a specific type of interest rate.
When seeking business funding or any type of traditional financing, comparing interest rates is very common. Interest rates make a big difference in the payment amounts and overall costs for business loans and are usually based on the prime rate set by the Federal Reserve.
Fixed rate and adjustable rate are the two primary types of interest rates. Fixed rates are interest rates set at the time of inception and always remain the same throughout the length of the loan or financing.
Like fixed rates, adjustable rates are set at the time of inception, but with an adjustable rate, the rate is slightly lower. Both parties usually agree to set this lower rate, knowing that it will later adjust to a fixed percentage over the prime rate.
The advantage of a Merchant Cash Advance is that there is no interest rate charges.
back to business resource center
OR by calling us at 1.888.702.2748
Rapid Capital Funding has helped hundreds of business owners just like you get the money they needed to realize their dreams.
