The Annual Percentage Rate (APR) is the total cost of borrowing, expressed as a percentage of your principal. There are no origination, early repayment, late payment, or liquidation fees.
The interest rates for term loans
The APR for a term loan depends on a few factors:
- Interest payment plan type: Payment at maturity loans carry higher rates than monthly payment loans, because interest payments are deferred.
- Loan size: Larger loans qualify for lower rates.
- Loan type: Volatility-proof adds a flat 2.95% to the APRs for standard loans.
| Loan Amount | Monthly Payment (Standard) | Monthly Payment (Volatility-proof) | Payment at Maturity (Standard) | Payment at Maturity (Volatility-proof) |
|---|---|---|---|---|
| < $250,000 | 10.50% APR | 13.45% APR | 11.25% APR | 14.20% APR |
| $250,000 – $750,000 | 10% APR | 12.95% APR | 10.75% APR | 13.70% APR |
| $750,000 – $2,000,000 | 9% APR | 11.95% APR | 9.50% APR | 12.45% APR |
| $2,000,000 – $5,000,000 | 8% APR | 10.95% APR | 8.75% APR | 11.70% APR |
| $5,000,000 – $10,000,000 | 7.49% APR | 10.44% APR | N/A | N/A |
| ≥ $10,000,000 | Custom | Custom | N/A | N/A |
If you plan to borrow $250,000 or more, contact our Private team for white-glove service.
Once opened, the loan’s APR remains fixed until you refinance, consolidate, or close it.
How interest is calculated for term loans
Interest is calculated by multiplying your outstanding principal by the Daily Periodic Rate, which is the APR divided by 365 (or 366 in a leap year). With a monthly payment loan, the principal remains constant unless you make early repayments. With a payment-at-maturity loan, interest for the entire term is pre-calculated.
Terms are presented when you open the loan. For illustrative purposes (assuming no liquidations or early repayments):
- Monthly interest payments: A $10,000 loan at a fixed 10.50% APR over 12 months would cost roughly $87.50/mo in interest, with the $10,000 principal due at maturity for a total of $11,050.
- Full payment at maturity: A $10,000 loan at a fixed 11.25% APR over 12 months would result in approximately $1,125 in total interest, with principal and interest due at the end of the term for a total of $11,125.
The interest rates for lines of credit
The line of credit carries a variable APR, currently 13%, regardless of credit line size. The rate is calculated as the U.S. Prime Rate plus a fixed margin and may be recalculated once per calendar quarter on the last business day (March 31, June 30, September 30, and December 31).
How interest is calculated for the line of credit
Interest accrues only on the amount you draw (your principal), not on your available credit.
Interest starts accruing the moment you draw funds and continues to accrue daily until you repay. Each new draw increases your outstanding principal, and each repayment decreases it. Your monthly interest bill is the sum of the daily interest charges across the entire billing cycle.
Suppose you have a line of credit at 13% APR (daily rate ≈ 0.035616%):
- On the 1st, you draw $50 to cover a small expense. Interest begins accruing on $50 immediately.
- On the 16th, you draw another $300. Your outstanding balance rises to $350, and interest now accrues on the full $350.
- On the 25th, you repay $200 before 5 PM ET. Your daily balance drops to $150 that same day.
At the end of the 30-day billing cycle, your interest is calculated on the daily balance each day:
- Days 1–15 (15 days at $50): ~$0.27
- Days 16–24 (9 days at $350): ~$1.12
- Days 25–30 (6 days at $150): ~$0.32
- Total interest due: ~$1.71