--- title: How to Finance Your Small Business in a High-Rate Environment description: Today’s high interest rates may pose challenges for small businesses looking to finance their launch or growth, but there are still options available to help meet your goals. image: https://smartbizbank.com/hubfs/Imported_Blog_Media/high-rate-environment-1.jpg --- - [Share](https://smartbizbank.com/blog/how-to-finance-your-small-business-in-a-high-rate-environment#) - - - - [mailto:?subject=Check%20out%20https://smartbizbank.com/blog/how-to-finance-your-small-business-in-a-high-rate-environment](mailto:?subject=Check%20out%20https://smartbizbank.com/blog/how-to-finance-your-small-business-in-a-high-rate-environment) # How to Finance Your Small Business in a High-Rate Environment May 18, 2023 By [Kristin Woodward ](https://smartbizbank.com/blog/author/kristin-woodward) We’ve all watched interest rates gradually rise over the last several quarters. For small businesses seeking affordable financing solutions, this may seem daunting. But several options still exist to help you fund your day-to-day operations and growth. Learn more and decide which may be most suitable for your situation. [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/3d216d78-601b-4bc6-b9d5-3df52894e921.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/3d216d78-601b-4bc6-b9d5-3df52894e921) ## SBA loans  Even in good economic climates, small businesses frequently use SBA loans as an affordable financing option. The Small Business Administration's 7(a) loan program provides businesses with up to $5 million in funding that they can use for working capital, equipment purchases, or real estate acquisition. These loans are typically easily accessible to borrowers, and because they are government-backed, they carry less risk for lenders. That makes them widely regarded as a win-win situation for borrowers and lenders, meaning securing funding this way may be easier for small businesses than other loan options.  SBA loans tend to offer longer repayment terms than other forms of loans, typically 10-25 years. This generally makes managing cash flow easier for small businesses. SBA loans often feature lower interest rates than other loans — even in an environment of high rates — helping small business owners save money over the long haul. Check our [current rates](https://www.smartbizloans.com/sba-loans) and see if you pre-qualify in minutes. ## Bank loans Traditional bank loans generally remain an effective tool for financing small business operations even during times when interest rates are high. They may take many forms, from [term loans](https://www.smartbizloans.com/bank-term-loans) repaid over an agreed-upon timeframe, [lines of credit](https://www.smartbizloans.com/line-of-credit) that allow businesses to draw funds as needed, and commercial mortgages used to buy or refinance property. These are the most sought-after options, and business owners may work closely with their banks to identify which fits them best. Qualifying for a bank loan may be more difficult than getting an SBA loan. Banks may lend money based on credit history and collateral alone, so in some cases, strict requirements could make qualifying challenging. And, while interest rates on bank loans tend to be lower than those for other financing solutions like credit cards, they're typically higher than rates for SBA loans. ## Credit cards Credit cards typically offer small businesses a quick and convenient means of financing operations and covering expenses like office supplies, travel, and marketing costs. Some cards even provide rewards or cash back programs that allow small business owners to save money on expenses. Attractive 0% intro rates make using them for short-term financing — especially in times when interest rates are high — even more appealing. In the right circumstances, credit cards may be an ideal solution for small business owners with solid credit histories and additional collateral backing. On the other hand, credit cards without those enticing perks may be one of the more costly financing solutions for small businesses, especially in an environment with high interest rates. Small business owners also must consider potential late payment fees and keep an eye out to ensure they aren’t exceeding their credit limit. Additionally, over-relying on credit cards may result in high levels of debt, which may be difficult for small companies to manage. [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/148aad69-7273-4b38-a750-fffe1a2ccf0b.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/148aad69-7273-4b38-a750-fffe1a2ccf0b) ## Personal savings Many small business owners who are just starting out turn to personal savings as an alternative means of financing equipment purchases, marketing costs, and other line items necessary to get their business off the ground. This approach may make sense as it helps avoid debt, saves on interest charges and fees, helps you maintain greater control of your business, and gives you more freedom and flexibility than bank loans and credit options can offer. But using personal savings can be risky since success is not guaranteed. Even if your small business takes off, depending solely on your savings may not provide enough capital to meet all the costs related to running the business. Furthermore, using personal funds may limit your spending ability on personal needs and may lead to financial strain. ## Crowdfunding Crowdfunding platforms like [Kickstarter](https://www.kickstarter.com/)®, [Indiegogo](https://www.indiegogo.com/)®, and [GoFundMe](https://www.gofundme.org/)® generally allow anyone to raise money online from large numbers of contributors, which is typically ideal for raising small business funds from a wide range of donors. And interest rates aren’t a factor. This approach enables small businesses to reach a pool of investors that might be open to supporting their vision and mission. Crowdfunding campaigns may also help generate buzz that helps you build brand recognition and grow your customer base. Plus, some crowdfunding platforms provide loans or equity investments with more flexible financing solutions than traditional lenders. Small business owners contemplating this strategy typically must be ready to invest a considerable amount of planning time, marketing resources, and networking efforts if they wish to succeed. You may also require upfront financial investments to produce compelling campaigns or expand your social media presence and engage potential investors to ensure that your efforts pay off. ## Which option is right for you? Although today's high interest rates may seem intimidating, viable financing solutions still exist to help your business regardless of its stage or phase. SBA loans, bank loans, credit cards, personal savings, or even crowdfunding may all offer viable funding solutions. Research each one and compare costs and benefits before selecting what fits best in your situation. See how an [SBA loan from a bank in the SmartBiz® network](https://www.smartbizloans.com/sba-loans) may help you get the funding you need to succeed, even when interest rates are high. [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/7d8f1665-4bce-4703-ac80-79e7821f4a82.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/7d8f1665-4bce-4703-ac80-79e7821f4a82) ![Q3 Promo E1](https://smartbizbank.com/hubfs/Q3%20Promo%20Email%20Images/Q3%20Promo%20E1.png) ### Access Funds Quickly Apply for a Bank Term Loan from a bank in our trusted network [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/08df270b-4561-4437-a5aa-11d47ef08efb.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/08df270b-4561-4437-a5aa-11d47ef08efb) - [Follow SmartBiz](https://smartbizbank.com/blog/how-to-finance-your-small-business-in-a-high-rate-environment#) - - - - - ### Access to the right loan for right now We’re connecting small businesses with SBA, bank term loans, lines of credit, and flexible financing options. [![See if you pre-qualify](https://no-cache.hubspot.com/cta/default/21458256/08df270b-4561-4437-a5aa-11d47ef08efb.png)](https://cta-redirect.hubspot.com/cta/redirect/21458256/08df270b-4561-4437-a5aa-11d47ef08efb) ##### Topic - [Business Loans](https://smartbizloans.com/blog/tag/business-loans) - [Business Stories](https://smartbizloans.com/blog/tag/business-stories) - [Marketing](https://smartbizloans.com/blog/tag/marketing) - [Money Management](https://smartbizloans.com/blog/tag/money-management) - [Operations](https://smartbizloans.com/blog/tag/operations) ## Related Posts [ See all blog posts ](https://smartbizbank.com/blog) [Money Management July 01, 2026 ## How to Reforecast Your Budget Based on Summer Trends When you built your company’s budget for this year, you no doubt looked at past data. However, there were probably also some future projections that... Read More ](https://smartbizbank.com/blog/reforecast-your-budget-with-summer-trends-smartbiz-bank) [Money Management June 24, 2026 ## The Counterintuitive Truth About Summer Slowdowns For many small business owners, summer is an uncomfortable time of year. Many consumers travel or spend more time at home, which typically leads to them making fewer... Read More ](https://smartbizbank.com/blog/do-less-this-summer-to-grow-your-business-smartbiz-bank) [Money Management June 22, 2026 ## Small Business Revenue: Determine Where You Stand As a business owner, regularly reviewing your annual revenue gives you a clear picture of your company’s current health and helps you evolve your business strategically so... Read More ](https://smartbizbank.com/blog/small-business-revenue-determine-where-you-stand) ### Smart growth is smart business ## Access to the right loan for right now See if you pre-qualify, without impacting your credit score. 1 [ Apply Now ](https://smartbizbank.com/apply) 1. We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, SmartBiz Bank and the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may impact your credit score. The SmartBiz® Small Business Blog and other related communications from SmartBiz BankSM are intended to provide general information on relevant topics for managing small businesses. Be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed. 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