Rate reflects perceived risk
Pricing is a reflection of how a funder reads your risk. Credit profile, time in business, revenue stability, existing debt and collateral all feed into it. Improve any of those inputs and the pricing available to you generally improves with it.
Fix the inputs you control
Bring personal credit utilization down before you apply — it is one of the fastest-moving factors in a credit profile. Clear or consolidate small nuisance balances. Keep business deposits flowing through a single business account so your revenue is easy to verify. Avoid opening several unrelated credit accounts in the weeks before you apply.
If your credit profile is the constraint rather than your business, it is often worth spending a defined period repairing it before applying. Applying while the profile is weak tends to lock in weaker terms.
Structure and collateral change pricing
Secured structures generally price better than unsecured ones because the funder's exposure is lower. If you are financing equipment, financing it as equipment — rather than drawing generic working capital — usually produces better terms.
Shorter terms often carry lower total cost but higher payments. Weigh the total cost against what your cash flow can absorb each month.
Compare more than one route
Accepting the first offer you receive is the most common and most expensive mistake in business funding. Reviewing several structures in a single conversation gives you real leverage and a clear sense of the market for a business like yours.