Interest rate on operating load

[kraftdda]

Talked to my banker today about a loan for updating some equipment for my trucking company this year. Just wondering if 6.9% locked in till 2010? I know this might be a bit off subject but so far this place seems to be very knowledgeable. Thanks. That is for a 300,000 note that I can draw on until May of 2010.

[brewer12345]

Thats roughly 1.7% over LIBOR. Sounds like a reasonably good deal for a small business loan. What are the fees like?

[Martha]

I agree with Brewer. Equipment loans that I was seeing back during the fall generally were floating rates with no lock in at all, or were closer to 8% with a 1% origination fee.

[MooreBonds]

Is there a provision of a certain rate applied to the unused balance of the line of credit? That could really drive up your effective cost of capital if there is. Read the fine print and all of the asterisks and superscripts.