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How does Ferdies Financial calculate the interest rate on your payday loan?

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When applying for a commercial loan for your small business, one of the main factors that you should consider is the interest rate of the payday loan, since this figure will determine how much your monthly payments will amount to.

The interest rate of Ferdies Financial varies according to the type of loan and according to each individual applicant. This is the range of available rates:  

  • In microcredits (between $ 5,000 and $ 75,000) the annual interest rate ranges between 19.0% and 34.0% (equivalent to 1.58% -2.83% monthly)
  • In commercial loans (between $ 10,000 and $ 400,000), the annual interest rate ranges from 12.00% to 24.75% (equivalent to 1% -2.6% monthly)

Ferdies Financial interest rates compared to other financing options

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The interest rates of Ferdies Financial are very similar to those of credit cards, but unlike this type of financing, Ferdies does not charge any other type of penalty. Ferdies loans also give you some benefits that you will not find on a credit card: for example, you will receive continuous support and assistance from our business loan specialists, and you will have access to resources and exclusive discounts. But above all, by taking one of the Ferdies Financial loans, you can build your commercial credit, something you can’t do with a credit card. When you establish a solid credit history, you can access more business opportunities and a greater amount of capital. In other words, commercial loans from Ferdies Financial are as convenient and simple as a credit card, but they have added value and greater advantages.

Some applicants may think that our interest rates are high compared to those offered in traditional banks. But, again, Ferdies Financial offers unique benefits that a bank will not provide: Ferdies does not require you to present a guarantee to guarantee your loan, nor does it need your Social Security Number (applicants who only have an ITIN are accepted). In addition, you can obtain the funds you need to finance your business in a short period of 2 to 10 days, with minimal paperwork (keep in mind that the average financing time in a bank is 3 months). For most lenders, the long list of advantages provided by Ferdies Financial and the quality of its service far outweigh the slightly higher prices.

How does Ferdies Financial calculate the interest rate on your loan?

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Ferdies Financial interest rates are calculated individually depending on the applicant and, therefore, vary in each case. These are the factors they will consider when calculating your interest rate:

  • Global cash flows: include personal cash flows (family income) and your business.
  • Industry comparison: Ferdies takes into account the performance of your company compared to others in the same industry.
  • Credit history : Your credit history shows Ferdies that you are a responsible and reliable borrower. However, they also accept applicants without a credit history, since they understand that many entrepreneurs in the Latino community have not remained in the United States long enough to establish a credit history.

“We are proud to help the community of Latino business owners, who are normally served by banks, by not asking for a credit history. We know that having a credit history can be a challenge for many of them ”- Jesse Machorro, Credit Manager of Ferdies Financial

How can Ferdies Financial lower your interest rates?

Ferdies Financial makes every effort to make its financial products affordable, and that is why we offer this exclusive opportunity to all our members: after 9 months of making payments on time to pay off your loan, you can request a second loan for a larger amount and with a lower interest rate.

Once 9 months have passed since you first obtained your loan, you are more likely to get your interest rate to decrease since you have proven your solvency to Ferdies Financial. You have shown that you are able to handle your debt in a responsible manner and therefore you can continue to do so in the future.

In addition, Ferdies Financial loan specialists will be happy to help you and work with you to find practical ways to reduce your interest rate.

How can you calculate what you will pay in interest?

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Simply use the Ferdies Financial business loan calculator, a unique tool that can help you calculate the cost of your interests, the total cost of your loan and your monthly payments.
To use the commercial loan calculator, just enter the following information:

  • The total loan amount you wish to request
  • The payment term (between 20 and 60 months)
  • The monthly interest rate (between 1% and 2.5%)

Once you enter those figures, click on the orange “Calculate” button, and the calculator will immediately display the following information:

  • The total interest you will pay for the loan.
  • The closing rate, which is the only charge on Ferdies Financial loans. There are no other fees, such as processing or documentation.
  • The total cost of the loan, which is the total interest plus the closing rate
  • Your monthly payment

The most important number to pay attention to when analyzing the details of your loan is the latter, the monthly payment. You should make sure that you feel comfortable with this number and that you can make monthly payments on time every month. If this amount makes sense to you, it can be a very convenient loan for your business.

Ferdies Financial financial loans: fair interest rates

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While interest rates are a crucial aspect in any commercial loan, there are many other factors that you should consider when applying for a loan. At Ferdies Financial, our interest rates are fair because we offer many advantages that other traditional financial institutions do not offer:

  • We do the calculations to make sure that the return on investment you will get from your loan will far exceed the cost of the loan itself.
  • There are no surprises: your monthly payment is fixed and will never change.
  • We do not charge any other fees, and you can pay your loan in full at any time without penalty for prepayment.
  • As we have seen, after only 9 months of payments on time, you can qualify to reduce your interest rate.
  • We assign you the financial solution that best suits the specific needs of your business and we make sure that you feel comfortable with the monthly payments.
  • You will not have to worry about risking your personal assets or those of your company, because we will not ask you to guarantee your loan.
  • You can count on us if your request has been rejected by a traditional bank, because we have fewer requirements than most banks. We do not close the doors to any business!
  • You can use your ITIN if you do not qualify for a Social Security Number.
  • You do not need to have a credit history to qualify for a commercial loan with us.

Above all, the Ferdies Financial customer service is fully customized. We are proud to establish strong and lasting relationships with our members. Our loan experts are bilingual and we offer educational resources and materials in Spanish to improve your financial performance and grow your business. We understand the unique challenges faced by small business owners, and we strive to work with you to make your business prosper.

All these reasons justify the fact that Ferdies Financial interest rates are slightly higher than in some traditional financial institutions. In fact, and taking into account everything we offer with our commercial loans, we can guarantee that our interest rates are not high, but FAIR. In short, the additional cost compensates for everything you can get with one of our commercial loans, and that you won’t get using a traditional bank.

It is important that you know whether the interest rate of a commercial loan is fair.

Apply now for your commercial loan with Ferdies Financial: you can complete the process completely online. In just a few minutes, you will see what loan and interest rate you qualify for, and you can get your commercial loan in no time. What are you waiting for to grow your business?