Had to pick between a fixed rate and variable rate for my small business loan last year

I went with the variable rate for my bakery in Nashville and it saved me about $200 a month for the first 6 months. But then rates jumped and now I'm paying more than I would have with the fixed option. Has anyone else regretted their choice on a business loan?

2 comments

2 Comments

riveradams5d ago

Actually variable rates are adjusted quarterly on most small business loans, not monthly.

the_cameron4d ago

Hmm, "actually variable rates are adjusted quarterly" - I'd take that with a grain of salt. In my experience, it really depends on the lender and the specific loan terms. I've seen some that adjust every six months, some that track a specific index rate daily even if they only change rates quarterly. And honestly, does it even matter that much for most small business owners? The quarterly vs monthly thing feels like splitting hairs when you're just trying to figure out if your payment is gonna go up 50 bucks next year. Like, sure, it's technically correct, but I'm not sure it's the kind of detail that changes anyone's bottom line.