Rates for a business loan in 2024: the latest data and our best advice

2024 business loan rates: an anticipatory start to the year. With the key rates Fed and ECB stable at around 3,5% In the wake of the financial crisis, entrepreneurs are keeping a close eye on future financing trends. This stability, after the significant increases in 2022 and 2023 opens the door to well-considered debt-raising opportunities this year.

What rate for a business loan in 2024?

In 2024, the best rate for a business loan is 3.6% for the purchase of commercial premises and 4.1% for investments and the acquisition of a business. Here are the details according to the nature of the project and the repayment period:

As regards the impact of company size on the cost of credit, the data show a marked differentiation:

• Visit PME face an average annual interest rate of 5,12 % This reflects the higher risk perceived by lenders due to their size and potentially more limited creditworthiness.

• Visit ETI benefit from a more advantageous rate at 4,36 % Their intermediate position gives them a balance between solid repayment capacity and the flexibility to adapt to market changes.

• Visit large companies Despite easier access to credit and greater negotiating power, the average cost of credit was 4,48 % . Their exposure to the unstable international context is probably the cause.

Will it be easier to get a business loan in 2024?

Yes, according to the experts. The year 2024 marks a easing of conditions for obtaining business loans This is thanks in particular to lower lending rates and longer loan terms.

In January rate cuts of 0.15 to 0.40 percentage points were recorded, signalling a resumption of interbank competition. The average rates start at 3.5% over 5 years and 4.00% over 10 years with variations depending on the borrower's profile and the bank chosen.

Usury rates in 2024: an obstacle now removed

New usury rates for 2024, set for the end of 2023 They also facilitate access to credit. Here's an overview:

• Cash credit : to 7,35 % for loans from over 6,000 euros

• Home loans : 6,29 % for fixed-rate loans of 20 years or more

• Business loans : to 18.31% for account overdrafts

These higher usury rates should no longer act as a brake on borrowers or banks, promising a more favorable environment for business loans in 2024.

The usury rate represents the maximum rate at which a loan can be granted . Sound increase facilitates the granting of loans giving banks more leeway to set their interest rates, making credit more accessible to companies of all sizes.

To keep abreast of potential changes in interest rates that could affect business loans in 2024, it's crucial to follow the announcements of the Federal Reserve (Fed) and European Central Bank (ECB) .

What are the professional rates for 2024 based on?

Business loan rates in 2024 are based on several benchmarks. Here are the main ones:

Let's take the Euribor to illustrate the evolution of these benchmark indices. Its variations have an immediate impact on the interest rates applied to business loans:

Euribor 2024 chart (source : euribor-rates.eu )

How will business loan rates evolve in 2024 and beyond?

In 2024, the business loan rates should first stay then fall slightly from the start of the year before experiencing a sharper decline from the second quarter onwards .

This trend can be explained by inflation continues to fall from 5.4% in 2023 to 2.7% on average in 2024 . Thanks to a return to energy price stability and central bank action to anchor inflation expectations on their long-term 2% target.

La GDP growth in the Eurozone should accelerate slightly, from 0.6% in 2023 to 0.8% in 2024 before stabilize at 1.5% in 2025 and 2026 .

As for the unemployment is expected to increase slightly in the short term, reaching 6.6% in 2024 before gradually declining, reflecting the overall resilience of the economy.

What rate can you expect for a business loan at the end of 2024? Will business loan rates fall in 2024?

By the end of 2024, companies can look forward to a lower lending rates by around -1 percentage point compared with the end of 2023 . This anticipation is based on observed monetary easing trends and current economic forecasts.

Should companies borrow at fixed or variable rates in 2024?

With interest rates on the decline, opting for a variable rate may seem advantageous in 2024. However, caution is advised, as an unexpected rise in rates over the average term of a business loan, often of 5 to 7 years could increase the total cost of credit.

Should companies wait to borrow in 2024?

If rates are expected to fall, waiting might be a good idea provided that the project can be postponed without prejudice major. This strategy applies if the need for financing is not immediate and can tolerate a postponement.

Which bank for a business loan in 2024?

Société Générale is often cited for reacting quickly to rate changes, suggesting that it could be among the first to apply rate cuts to business loans.

Other banks to consider for a business loan include :

• BNP Paribas for its wide range of services dedicated to professionals.

• Crédit Agricole recognized for its personalized advice and proximity to local entrepreneurs.

• La Banque Postale which offers tailored solutions for small businesses.

As an alternative to traditional bank loans, Hero Cash stands out as a revolutionary financing solution for professionals . This service enables companies to receive accelerated payments on customer invoices of their choice , significantly improve their cash flow without administrative complexity.

With Hero Cash, you benefit from instant liquidity a simplified management of your working capital and a reliable partnership to support your growth.

It's the ideal option for professionals looking for flexibility and efficiency in financial management, enabling them to react quickly and adapt to business opportunities.

How do I simulate a business loan?

To simulate your business loan comparison tools as Meilleurtauxpro offer a clear view of the best offers for your needs. Alternatively, the direct contact with banks can also reveal customized offers for your company.

What alternative can be used for business credit in 2024?

In 2024, instead of limiting themselves to traditional credit, companies can opt for Hero .

With Hero you can offer your customers pay online with payment facilities (payment in instalments, 30, 60 or 90 days, etc.). For your part, you cash the payment immediately : no risk of non-payment and a manageable cash flow . And your accounting ? It is automatically updated with Hero!

Ultimately, in an environment where business loan rates in 2024 As the market evolves, turning to flexible solutions like Hero could be decisive.

Make an appointment with one of our advisors today.

To find out more about interest rate trends, read our article on business loan rates in 2023 .

Frequently asked questions :

How is corporate debt evolving in France?

Corporate debt in France continues to grow, in line with global economic trends.

What rate in 2024 for a business loan for commercial premises?

For commercial premises, the average rate observed at the beginning of 2024 is 3.6%, over a repayment period of 5 to 20 years.

What rate in 2024 for a business loan?

For goodwill, the average rate at the start of 2024 is 4.1%, for repayment periods ranging from 5 to 10 years.

What rate in 2024 for a business loan for cash flow?

For short-term cash requirements of less than one year, the average rate is 5.7%.

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