Interest Rates Are Up. Your Growth Plans Don't Have to Stall.

Borrowing costs are a concern. But a higher-rate environment doesn’t automatically mean you should put your plans on hold. Owners are still preparing to hire, build inventory, and pursue new sales. The key is to choose financing deliberately, not wait indefinitely for rates to fall or take the first offer that comes along.

Broad Reach Financial Services helps you compare business funding options and understand how they may fit your goals. We’re a funding advisor, not a lender. Call or text 800-203-2176 or 480-863-0531, or email support@broadreachfinancial.com, to talk through your next step.

The rate picture: higher costs, but growth plans remain

The Fed’s September hike continues to work through the market. The federal funds rate stands at 3.75%–4.00%, and Prime is 7.00%. Markets expect the Fed to hold steady at its October 27–28 meeting, but another hike before year-end remains possible.

That matters if you use borrowing with a variable rate. Many business credit cards have variable APRs, and some credit products are tied to Prime. When rates rise, the cost of carrying a balance can rise too. The actual effect depends on your account terms and lender.

Business confidence has softened, but it hasn’t fallen off a cliff. The NFIB Small Business Optimism Index slipped to 97.9 in September, just below its 52-year average. Inflation is the top concern for 20% of owners, and a net 8% paid higher rates on their latest loan. The highest reading since June 2025. (NFIB’s September report)

At the same time, a net 9% expect higher real sales next quarter, inventory plans reached their highest level since December 2024, and 17% more owners plan to hire than cut jobs. That’s the tension: borrowing costs deserve attention, but opportunity doesn’t always wait for a perfect rate environment.

Let us help you start with the job the money needs to do

The first thing we do with every client is get clear on the purpose of the financing. Inventory, a new location, equipment, an uneven cash-flow cycle, a long-term property purchase — the right structure depends on what you’re funding, how quickly you need the money, and how repayment fits your cash flow.

Then we do the comparison work for you: payment, term, fees, rate type, collateral requirements, and what happens when an introductory offer ends. A lower initial cost may not be the best fit if the repayment schedule strains your business later, and we spot that before you sign, not after.

For a quick conversation about your options, call 800-203-2176 or 480-863-0531. We’ll help you understand what may fit and what questions to ask before you commit.

When 0% business cards may fit

When the fit is right, 0% business credit card stacking can be a practical first option for eligible owners. Depending on the card and approval terms, an introductory period may offer 0% for up to 18 months. In a 7% Prime environment, that can be useful financing for planned business expenses.

The offer has an end date. After the introductory period, the card’s regular APR applies, and it’s usually variable and higher than 0%. So at Broad Reach Financial, we can help you explore moving any unpaid balance to a term loan before the high interest rate kicks in. A clear strategy keeps your credit profile and available credit in good shape.

For a closer look at how to approach applications thoughtfully, read our guide to 0% credit card stacking.

When a fixed-rate term loan may make more sense

If you need a defined amount and want predictable payments, a fixed-rate business term loan may be worth comparing. A fixed rate locks the interest rate and payment schedule for the life of the loan, subject to the loan agreement. That predictability can be valuable when variable borrowing costs are rising.

A term loan may also help some business owners pay down higher-rate revolving card balances. As card balances fall, credit utilization may improve, which may support a healthier credit profile. Results vary, and the loan is not debt disappearing. It’s a different repayment structure. Keep making required card payments until the payoff has posted to the accounts, and compare the loan’s total costs and term before deciding.

Need help comparing an SBA loan and a standard term loan? See our overview of SBA loans versus business term loans.

SBA costs: check the details before you apply

For qualifying 7(a) loans of $700,000 or less, an upfront guaranty fee of 0% took effect October 1 for manufacturers, specified food supply chain businesses, and rural businesses. For businesses in those categories, this may represent a real cost saving. The waiver applies only when the loan and applicant meet program rules; it isn’t a blanket fee change for every 7(a) borrower. The SBA’s 7(a) loan program includes financing for eligible working capital, real estate, equipment, and other business needs.

For qualifying long-term real estate and equipment projects, the 25-year SBA 504 rate climbed to 6.97%, up from 6.54% in September. If you’re planning a property purchase or major equipment investment, run the numbers using current terms rather than assuming waiting will make financing cheaper. The quoted rate is only one part of the decision; eligibility, fees, project structure, and lender terms matter too.

When flexibility or speed matters more

Not every funding need calls for a lump sum. A business line of credit can help manage recurring working-capital needs, while accounts receivable financing may help when outstanding invoices affect cash flow. A merchant cash advance may help with an urgent cash-flow need, but you should understand the full repayment cost and how payments may affect daily operations.

If you’re exploring alternatives, take care of the basics alongside your funding search: check your credit reports for errors, make payments on time, and avoid applying for multiple products without a plan. We generally recommend applicants with a 650 FICO score or higher, but that’s a recommendation, not a cutoff. Eligibility and terms depend on the lender, product, applicant, and business circumstances.

Compare options before you put growth on hold

Let Steve and Gale put their 30-plus years of business ownership and loan processing to work for you. Steve built and sold his own companies. Gale has processed loans for decades. They've sat on your side of the desk, and they'll talk you through your options.

Rates may be higher. That makes a careful comparison more important, not growth impossible. Call or text 800-203-2176 or 480-863-0531, or email support@broadreachfinancial.com. We’ll help you review your options and decide what makes sense for your business.

Other lenders fit you into their program. We fit the program to you.

Broad Reach Financial Services Inc. is not a lender; we provide education and guidance and connect clients with funding sources. Approval, rates, terms, fees, eligibility, collateral requirements, and funding times vary by lender, product, applicant, and business circumstances; no outcome is guaranteed. This article is general educational information and not legal, tax or financial advice.

Why not use a term loan to pay down your credit card balances

If your business is carrying credit card balances, you may be wondering whether a term loan could make repayment easier. The idea is straightforward: replace revolving card debt with one scheduled loan payment and a clear payoff date.

That can help in the right situation, but a loan doesn’t erase debt, and it isn’t automatically cheaper. Before you decide, compare how interest works, what the loan really costs, and whether its payment fits your cash flow. Call 800-203-2176 or 480-863-0531, or email support@broadreachfinancial.com to talk through possible options.

Why the kind of interest matters

The short version: a credit card compounds against you daily, and a term loan charges simple interest on what you still owe, on a schedule that ends. Understanding that difference is why this comparison is worth five minutes of your time, because it changes what carrying a balance actually costs you.

Credit card interest and loan interest work differently

A credit card’s APR is an annual rate, but many issuers calculate interest using a daily periodic rate, often the APR divided by 365, though the card agreement explains the method. The issuer applies that rate to your balance each day. If interest is added to the balance, the issuer can calculate subsequent interest on that larger amount. That’s compounding.

Many card APRs are variable, too. If the rate changes, your borrowing cost may change with it. And because minimum payments can be relatively small, a large share of what you pay may go toward interest rather than reducing the balance. For example, a $5,000 balance at 24% APR can take many years to pay off if you make only minimum payments. New purchases can make the climb steeper.

A fixed-rate, fully amortizing term loan usually works differently. Each scheduled payment covers interest on the remaining principal and pays down some of that principal. As the balance shrinks, the interest portion generally shrinks too. You can review the payment schedule, term, and expected total repayment before you sign.

The simple difference: On a term loan, interest is charged on what you still owe, and the balance follows a repayment schedule. On a credit card, interest may compound on a revolving balance, with no built-in payoff date if you keep making only minimum payments.

The Consumer Financial Protection Bureau explains how credit card issuers calculate interest. Check your own card agreement for its specific terms.

See the difference at a glance

The image at the top of this article is a simplified illustration, not a prediction or quote. Actual interest and repayment depend on your card agreement, loan terms, payments, and other factors.

When might a term loan make sense?

A business term loan may be worth considering if you’re carrying expensive card balances long term, prefer a set repayment schedule, and can manage the payments. It could replace several revolving balances with one structured obligation. Whether that lowers your cost depends on the complete loan terms, not just the advertised rate.

Compare the loan’s APR, fees, payment amount, number of payments, and total repayment with the cost of continuing to pay down your cards. A loan APR may reflect certain fees, such as origination charges, but you should still review all fees and the total amount you’ll repay. A card’s APR generally doesn’t include charges such as annual or late fees. Those costs can affect the real price of carrying a balance.

A lower monthly payment isn’t automatically a better deal. A longer term may reduce the payment while increasing the total interest you pay. Ask for the payoff schedule and compare total dollars and payoff date.

• A term loan may offer: scheduled payments, a defined term, and a planned payoff date.
• A credit card may offer: flexible access to revolving credit, but a variable rate, compounding interest, and no set finish line if you pay only the minimum.
• Either option may cost more than expected: fees, repayment behavior, and the terms you’re offered matter.

The credit rating angle: paying down cards may improve your score

We tell customers this all the time: using a term loan to pay down credit card debt can really improve your credit rating.

Here is why. One of the biggest factors in your credit score is how much of your available revolving credit you use. Carrying balances close to your card limits raises utilization and can lower your scores. Pay those balances off, and your utilization drops, which may improve your credit rating, often within a month or two after card issuers report the lower balances.

A term loan may also help in another way: it replaces revolving debt with an installment loan with fixed payments. Showing an installment account paid on schedule can work in your favor over time.

Two honest notes on what to expect. First, results vary: paying down balances may improve your scores, but no outcome is guaranteed, and the size of the change depends on your whole credit profile. Second, the improvement depends on the balances actually going down and staying down. If you fill the cards back up, the benefit goes with them. Used with a plan, though, the combination of paid-down cards, an installment loan, and restored available credit is exactly the setup many owners are working toward.

What paying off your cards does to your available credit

Something worth knowing before you consolidate: paying off your card balances doesn’t close the cards. Once the balances clear, that credit becomes available again, often with more room than before, since the loan moves the debt off the revolving side. Many owners use exactly that: lower utilization, an installment loan paid on schedule, and more available credit for whatever the business needs next.

Keep making at least the required payments on the cards until you’ve confirmed that any payoff has reached the card accounts.

If your balances come from a temporary business expense, a different financing structure may fit better. A business line of credit can offer revolving access for changing cash-flow needs; learn more in our guide to business line of credit options.

What about 0% business credit cards?

If you’re planning upcoming business expenses and can repay them within the promotional period, 0% business credit cards may be worth exploring first. Some offers provide an introductory 0% period, but the terms vary. The payoff plan matters: carrying a balance after the offer ends can get expensive quickly.

Our guide explains how to approach applications carefully for 0% credit card stacking. For many business owners, that is the first option we consider when the fit is right, because paying no interest during the promotional period beats paying any interest. If you already have a balance you expect to carry long-term, a term loan may be another option to compare, but it's not guaranteed to be a better deal.

We make the comparison for you

You don’t have to run this math alone, and you shouldn’t. Comparing card balances, APRs, fees, and minimum payments against a loan’s full terms is exactly the work we do every day, and the details that decide whether it’s a good deal are the ones that are easy to miss: what the payment does to your cash flow in a slow month, whether a longer term quietly raises your total cost, and which fees sit inside the APR and outside it.

Here’s what we do for you:

• We lay your card balances, rates, and payments next to the funding options and show you what each path really costs over its full life, not just the headline rate.
• We check whether a term loan payment fits your cash flow through a slow month, not just a good one.
• We compare options across commercial lenders, SBA resources, private investors, and other funding partners, so you’re seeing the market instead of one lender’s menu.
• We walk you through what may improve your credit rating along the way, because paying down revolving balances is one of the moves that can help, and it’s one we talk through with owners regularly.

Before you apply anywhere, pre-qualify with us. It takes about two minutes, uses a soft credit pull that won't damage your credit score, and carries no obligation. Financing services generally recommend applicants with a FICO score of 650 or higher. That’s a recommendation, not a cutoff or promise of approval; some cash-flow-based options may be available to business owners who don’t meet a FICO-based standard.

We serve businesses across all 50 states and bring 30 years of small-business financing experience. Depending on the product and lender, some options may close in as little as 48 hours.

Want us to run your numbers? Call or text 800-203-2176 or 480-863-0531, or email support@broadreachfinancial.com. We’ll compare options with you and talk through the trade-offs.

Let Steve and Gale put their 30-plus years of business ownership and loan processing to work for you. Steve built and sold his own companies. Gale has processed loans for decades. They've sat on your side of the desk, and they'll talk you through your options.

Call 800-203-2176 or 480-863-0531, or email support@broadreachfinancial.com. We’ll help you review your options without promising approval or a specific outcome.

Broad Reach Financial Services Inc. is not a lender; we provide education and guidance and connect clients with funding sources. We have 30 years of experience and serve businesses in all 50 states. Pre-qualification takes about two minutes and uses a soft credit pull that does not damage your credit rating; there is no obligation. Approval, rates, terms, fees, eligibility, collateral requirements, and funding times vary by lender, product, applicant, and business circumstances; no outcome is guaranteed. This article is general educational information and not legal, tax, or financial advice. Call 800-203-2176 or 480-863-0531, or email support@broadreachfinancial.com.

Other lenders fit you into their program. We fit the program to you.

SBA Loans vs. Business Term Loans: Which One Actually Fits Your Business?

You have a defined need. Maybe it’s equipment, expansion, a new location, commercial real estate, or working capital.

Now you’re deciding between an SBA loan and a business term loan.

Here’s the part almost nobody explains clearly: an SBA 7(a) loan is a term loan. The real comparison is an SBA-guaranteed term loan versus a conventional, non-SBA business term loan.

Broad Reach Financial Services is a funding advisor, not a lender. We compare options across commercial lenders, SBA resources, private investors, and other funding partners — 30 years in, all 50 states.

Let Steve and Gale put their 30-plus years of business ownership and loan processing to work for you. Steve built and sold his own companies. Gale has processed loans for decades.

They’ve sat on your side of the desk, and they’ll talk you through your options.

Pre-qualify with a soft credit pull in about two minutes — no damage to your credit rating, no obligation. Call or text 800-203-2176 or email support@broadreachfinancial.com.

The Main Difference: Who Stands Behind the Loan?

An SBA 7(a) loan is issued by a participating lender. The SBA provides the lender with a government guarantee, subject to program rules.

A conventional business term loan does not carry that SBA guarantee.

Both can provide a lump sum that you repay through scheduled payments over a defined term. Both can help fund a specific business goal.

The guarantee can affect the cost, repayment period, documentation, underwriting process, and eligibility requirements. That is what you are really comparing.

SBA Loan: Lower Cost, Longer Paperwork

SBA loans may offer longer repayment periods and favorable fixed terms for qualified businesses.

The SBA 7(a) program can support:

• Working capital
• Equipment and machinery
• Commercial real estate
• Business expansion
• Renovations
• Business acquisition
• Certain debt refinancing

SBA 504 financing is generally designed for major fixed assets such as commercial real estate, construction, and long-term equipment. It is not a general-purpose working capital product.

The trade-off is paperwork. Expect detailed underwriting, business and personal financial information, tax returns, debt schedules, ownership documents, collateral review, and an explanation of how the money will be used.

A personal guarantee is commonly required. Lenders may also require collateral, depending on the loan size and circumstances.

SBA backing does not mean automatic approval. You still need to show the business can repay the loan, the funds fit the program, and you meet the ownership and eligibility rules.

An SBA loan may fit you if:

• You have time for a more detailed process.
• You want to explore a longer repayment period.
• Your business has documented cash flow.
• Your ownership structure meets current SBA rules.
• You are funding a substantial, long-term project.

Some SBA processes may take longer than other financing options. That can be frustrating when a project is already moving. If you want to know whether the structure may fit before spending weeks gathering documents, call us at 800-203-2176 or email support@broadreachfinancial.com.

Business Term Loan: Faster, More Flexible

A business term loan provides a lump sum that you repay on a set schedule over a defined period.

The loan may come from a bank, online lender, commercial finance company, or another funding partner. Because it is not structured around an SBA guarantee, the lender may use a different approval process.

A business term loan may be used for:

• Equipment
• Renovations
• Expansion
• A new location
• Marketing and staffing
• Inventory
• Working capital
• A major business purchase

Compared with SBA financing, some term loans require less documentation and may close faster. Depending on the product and lender, some financing options may close in as little as 48 hours.

That speed can come with a higher cost or shorter repayment period. You may also see different collateral, personal guarantee, payment, and prepayment requirements.

A conventional term loan may fit you if:

• Your funding need is clearly defined.
• You need to move faster.
• Your request does not fit SBA program rules.
• Your ownership structure does not meet current SBA requirements.
• You have a simpler financing need than the SBA process warrants.
• You want to compare non-SBA options after a bank rejection.

If you need a fixed amount for a specific project, a term loan may be easier to understand than a revolving line of credit. For ongoing or unpredictable expenses, however, a business line of credit may be a better fit for working capital.

Want to compare a faster term loan with SBA financing? Call or text 800-203-2176. We’ll help you understand what may be available before you decide.

Important SBA Changes in 2026

Potentially higher combined SBA financing

Under a policy effective July 4, 2026, eligible borrowers may access up to $5 million through 7(a) and up to $5 million through 504, for a potential combined total of $10 million in SBA-backed financing, up from $5 million.

That $10 million is a combined maximum, not an automatic approval amount. Eligibility, repayment ability, collateral, project structure, lender requirements, and SBA rules still apply.

New ownership requirements

Beginning March 1, 2026, 7(a) and 504 applicants generally must be 100% owned, directly and indirectly, by U.S. citizens or U.S. nationals whose principal residence is in the United States, its territories, or possessions.

Under the updated policy, lawful permanent residents are no longer eligible to own an interest in an applicant Company. Review ownership carefully before assuming SBA financing is available.

The 7(a) Small Loan threshold changed

The 7(a) Small Loan threshold dropped from $500,000 to $350,000. This changes the underwriting treatment and documentation that may apply to larger requests.

The change does not mean every request above $350,000 is ineligible. It means the lender may process the request under a different SBA underwriting category.

Who Qualifies: The Rules That Trip People Up

The 2026 changes get the headlines, but these requirements trip people up in practice.

• For-profit, U.S.-based operating business. The business must operate in the United States, meet SBA size standards for its industry, and be organized in the U.S.
• Credit elsewhere. SBA financing is for businesses that can't get credit on reasonable terms from other sources. A bank "no" does not disqualify you — in some ways it is the point of the program.
• Personal guarantee. Every owner of 20 percent or more generally must sign an unconditional personal guarantee.
• Collateral is not always required. Loans of $50,000 or less do not require collateral. Above that, the lender follows its own policies for similarly sized non-SBA loans.
• Equity injection for startups and acquisitions. Startups and business acquisitions generally require a 10 percent equity injection.
• No SBA minimum credit score. The SBA does not set one. But most SBA lenders set their own floor, often in the 640 to 680 FICO range, close to the 650 FICO we generally recommend.

Rules and lender policies change, and each lender applies its own standards on top of the SBA's. Call or text 800-203-2176 or email support@broadreachfinancial.com, and we will tell you where you stand before you spend weeks gathering documents.

SBA Loans vs. Business Term Loans: At a Glance

• Cost structure: SBA loans may offer more favorable pricing for qualified borrowers. Conventional term loans may cost more, especially when they provide faster or more flexible approval.
• Repayment shape: Both are generally lump-sum loans repaid through scheduled payments. SBA loans may offer longer terms, depending on the program and how the funds are used.
• Funding speed: Conventional term loans may close faster. Some options may close in as little as 48 hours, depending on the lender and product. SBA financing often takes longer.
• Documentation: SBA loans usually require more detailed financial, ownership, tax, and collateral documentation. Non-SBA term loans may require less, but requirements vary.
• Collateral: Either option may require collateral or a personal guarantee. The exact requirement depends on the lender, loan size, and business profile.
• Credit requirements: Financing services generally recommend applicants with a FICO score of 650 or higher. That is a recommendation, not a guarantee. Some cash-flow-based options may exist for owners who do not meet a FICO-based standard.
• Eligibility rules: SBA loans must follow SBA program rules, including current ownership requirements. Conventional term loans follow the selected lender’s rules.
• Best fit: SBA financing may fit a larger, long-term project when you have time. A business term loan may fit a defined need when speed or flexibility matters more.

Which One Fits Your Business?

Choose an SBA loan if you have time, want to explore a longer repayment period and potentially lower cost, have documented repayment ability, and your ownership structure meets current SBA rules.

Choose a conventional business term loan if you need to move faster, want a simpler process, don't meet current SBA citizenship or ownership requirements, or have a defined project that doesn't justify extensive SBA documentation.

And if a bank already said no, that may not be the end of the road. A lender’s decision reflects its own rules. After a bank rejection, you can explore other small business funding options

Let’s Compare Your Options

SBA loans and business term loans can both help fund a defined business need. The better choice depends on your timing, cash flow, ownership, documentation, credit profile, collateral, and the project itself.

Call or text 800-203-2176 or email support@broadreachfinancial.com. The soft-pull pre-qualification takes about two minutes, doesn't affect your credit rating, and has no obligation. We’ll help you understand what you may qualify for and connect you with potential funding sources.

Other lenders fit you into their program. We fit the program to you.

Disclaimer: Broad Reach Financial Services Inc. is not a lender. We provide education and financing guidance and connect clients with commercial lenders, SBA resources, private investors, and other funding sources. Approval, rates, terms, fees, eligibility, collateral requirements, and funding times vary by lender, product, applicant, and business circumstances. No outcome is guaranteed. This article provides general educational information and is not legal, tax, or financial advice.