Personal and Small Business Loan Pricing Guide

What a good one includes

• A comprehensive matrix categorizing loan types, including personal unsecured loans, secured equipment financing, and working capital lines of credit.
• Clear, transparent interest rate ranges for both fixed and variable options, explicitly tied to borrower credit tiers.
• A transparent eligibility checklist detailing minimum credit scores, monthly revenue thresholds, and required time in business for quick self-assessment.
• An exhaustive fee schedule that clearly outlines origination fees, closing costs, underwriting fees, and any prepayment penalties.
• A side-by-side comparison matrix showing sample loan amounts, typical terms, and estimated monthly payments to ground the numbers in reality.
• A step-by-step application roadmap that guides the client on exactly what documents to gather and how to initiate the underwriting process.

Common mistakes to avoid

• Burying operational fees or origination costs in the fine print, which destroys borrower trust right at the start of the relationship.
• Using dense legal or financial jargon instead of plain language, which leaves clients feeling confused and hesitant to move forward.
• Failing to clearly state the minimum qualifying criteria, leading to a flood of unqualified applications and wasted administrative time.
• Neglecting to include a clear 'rates effective as of' date, which can cause compliance issues or customer disputes when market rates fluctuate.

Frequently asked questions