Fixed Interest Rate
An interest rate that stays the same for the entire term of a loan, resulting in predictable, unchanging payments.
A fixed rate protects a borrower from rate increases over the life of the loan, which makes budgeting easier since the payment amount (on an amortizing loan) generally doesn’t change from month to month.
Most standard business term loans and SBA loans are available with a fixed rate option, though the tradeoff for that predictability can sometimes be a slightly higher starting rate compared to a variable-rate loan.
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