To borrow or not to borrow?

Question

I need some working capital for my business. The bank wants to lend me $10,000 for 5 years at 11.75%, making payments about $221 monthly. This interest rate seems very high to me.

Does this seem fair? Do I have any other borrowing options besides my bank? Thanks!

Answer 1

That is an extremely high rate and 5 yrs is to long a time frame.  Keep shopping for a better loan.

Answer 2

For an unsecured loan, this rate is actually pretty low.

There are always a lot of borrowing options - what other avenues do you have available to you?  $10,000 doesn't seem like that much money.  Possible to borrow from relatives, 401(k) [not a withdrawal but a loan]?

Answer 3

Try a credit union

Answer 4

That's very high.  Tell the bank to shove the interest up their nose.