What is the difference between fixed and variable loans?
A fixed rate finance option is borrowed money that is repaid at a fixed rate of interest. Options like this include the Prospa Loans small business loan, which is available for loan terms of between 3 and 36 months. Throughout the term of your loan, you will repay a fixed repayment amount regularly for a fixed number of repayments until the loan is repaid in full. Variable rate finance means that the interest rate can vary during the term of the loan depending on economic conditions. When you choose a Prospa Loan, our team works closely with our business clients to ensure that we help you identify the best repayment schedule that works for you. Prospa funding can help you to support your business’s stability and ongoing growth and ensure that repayments don’t put a significant strain on your cash flow. If you’re looking for ongoing access to funds, then a line of credit option might work better for you. A line of credit offers your business ongoing access to credit funds and can be ideal for covering gaps in your cash flow, particularly during busy periods between invoice payments. You only pay interest on the funds you use, and, just like our small business loans, funding is possible within 24 hours of a successful application. For more information, please contact our lending specialists or quickly compare lending options online now.