It is possible to look to obtain a lower one for your business loan, whether the loan is existing or new.

Strategy #1

A good interest rate negotiation strategy is to obtain multiple quotes for your specific business loan request from at least two other lending institutions. This can create a “bidding war” provided your financials and company background are both sound.

Even if you’ve been with your current bank for years, notifying them that you are shopping for a lower rate can create a scenario where they step up to the plate to match or beat a competing offer. Since it is important to approach the bank in a way that will not offend them, if they are made aware that you are simply shopping rates in the best interest of your business they should fully understand.

Strategy #2

A business banking department relies very heavily upon having a healthy amount of deposit accounts. You can use this information to your advantage. Consider negotiating with the bank for a rate decrease in exchange for your agreement to maintain on an ongoing basis a certain dollar amount of deposit accounts with the bank.

There are many other negotiating tactics, and these are two that have proven to work in the past because they are in the bank’s best interest. First, by warning that you are shopping for rates as opposed to going with another bank unannounced, you have put the bank in a position to be able to have the loan for themselves before it is lost to a competitor. The second strategy gives the bank great value by virtue of your agreement to maintain a certain level of deposit accounts with the bank.

Strategy #3

Another proven strategy that is in both the bank’s interest and yours is to ask the bank if they are willing to present you with options. For example, you could see if they will give you the choice of a fixed interest rate or a variable interest rate. If you are able to convince three banks to give you rate options, you will be in a position to choose from at least 6 different scenarios for your business loan, rather than just the one that most borrowers are faced with.

These strategies can help a business to obtain a lower interest rate on a commercial loan.

You are welcome to share this report in its entirety and unedited. All links must remain intact. No information in this report should be interpreted as advice, as the report is meant for informational purposes only.

Tom Kirchmann created the multimedia Business Financing Secrets Guide to help business owners better understand how banks are viewing their business.

You can get your copy of a special, limited-time report on business financing strategies by clicking the link below:

Business Loan Secrets