You, the enterprise choose the period for how long you will need the loan. The market forces will obviously drive the interest rate. You need to define a rate that is reasonable to the market you’re your industry and creditworthiness to maximize chances of quick closure with financers. The interest rate customized particularly for you usually follows market rates closely (but can change in some cases depending on various external factors).
Typically the loans are in short lending cycles of three to six months. This gives maximum flexibility to enterprises to supplement short term capital deficit.
The rate of interest varies on a few factors like
- Your creditworthiness
- Seasonal variations
- Loan period
Friance charges a minimal commission per transaction