Short term loan rates will depend on the type of lender that you decide to work with. This being said, for the most part, short term loans carry much higher interest rates than other forms of financing. This is because short term loans are on offer to people with lower credit scores.

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 · Say you’ve taken out a $100K short-term business loan and the lender has a 1.18 factor rate. 1.18 multiplied by $100K is the total amount you’ll need to pay back: $118K. Then we’ll assume your lender will want you to pay back the total amount in 12 months, like with most short-term loans.

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