MonthJuly 2019

How does Ferdies Financial calculate the interest rate on your payday loan?



When applying for a commercial loan for your small business, one of the main factors that you should consider is the interest rate of the payday loan, since this figure will determine how much your monthly payments will amount to.

The interest rate of Ferdies Financial varies according to the type of loan and according to each individual applicant. This is the range of available rates:  

  • In microcredits (between $ 5,000 and $ 75,000) the annual interest rate ranges between 19.0% and 34.0% (equivalent to 1.58% -2.83% monthly)
  • In commercial loans (between $ 10,000 and $ 400,000), the annual interest rate ranges from 12.00% to 24.75% (equivalent to 1% -2.6% monthly)

Ferdies Financial interest rates compared to other financing options

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The interest rates of Ferdies Financial are very similar to those of credit cards, but unlike this type of financing, Ferdies does not charge any other type of penalty. Ferdies loans also give you some benefits that you will not find on a credit card: for example, you will receive continuous support and assistance from our business loan specialists, and you will have access to resources and exclusive discounts. But above all, by taking one of the Ferdies Financial loans, you can build your commercial credit, something you can’t do with a credit card. When you establish a solid credit history, you can access more business opportunities and a greater amount of capital. In other words, commercial loans from Ferdies Financial are as convenient and simple as a credit card, but they have added value and greater advantages.

Some applicants may think that our interest rates are high compared to those offered in traditional banks. But, again, Ferdies Financial offers unique benefits that a bank will not provide: Ferdies does not require you to present a guarantee to guarantee your loan, nor does it need your Social Security Number (applicants who only have an ITIN are accepted). In addition, you can obtain the funds you need to finance your business in a short period of 2 to 10 days, with minimal paperwork (keep in mind that the average financing time in a bank is 3 months). For most lenders, the long list of advantages provided by Ferdies Financial and the quality of its service far outweigh the slightly higher prices.

How does Ferdies Financial calculate the interest rate on your loan?

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Ferdies Financial interest rates are calculated individually depending on the applicant and, therefore, vary in each case. These are the factors they will consider when calculating your interest rate:

  • Global cash flows: include personal cash flows (family income) and your business.
  • Industry comparison: Ferdies takes into account the performance of your company compared to others in the same industry.
  • Credit history : Your credit history shows Ferdies that you are a responsible and reliable borrower. However, they also accept applicants without a credit history, since they understand that many entrepreneurs in the Latino community have not remained in the United States long enough to establish a credit history.

“We are proud to help the community of Latino business owners, who are normally served by banks, by not asking for a credit history. We know that having a credit history can be a challenge for many of them ”- Jesse Machorro, Credit Manager of Ferdies Financial

How can Ferdies Financial lower your interest rates?

Ferdies Financial makes every effort to make its financial products affordable, and that is why we offer this exclusive opportunity to all our members: after 9 months of making payments on time to pay off your loan, you can request a second loan for a larger amount and with a lower interest rate.

Once 9 months have passed since you first obtained your loan, you are more likely to get your interest rate to decrease since you have proven your solvency to Ferdies Financial. You have shown that you are able to handle your debt in a responsible manner and therefore you can continue to do so in the future.

In addition, Ferdies Financial loan specialists will be happy to help you and work with you to find practical ways to reduce your interest rate.

How can you calculate what you will pay in interest?

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Simply use the Ferdies Financial business loan calculator, a unique tool that can help you calculate the cost of your interests, the total cost of your loan and your monthly payments.
To use the commercial loan calculator, just enter the following information:

  • The total loan amount you wish to request
  • The payment term (between 20 and 60 months)
  • The monthly interest rate (between 1% and 2.5%)

Once you enter those figures, click on the orange “Calculate” button, and the calculator will immediately display the following information:

  • The total interest you will pay for the loan.
  • The closing rate, which is the only charge on Ferdies Financial loans. There are no other fees, such as processing or documentation.
  • The total cost of the loan, which is the total interest plus the closing rate
  • Your monthly payment

The most important number to pay attention to when analyzing the details of your loan is the latter, the monthly payment. You should make sure that you feel comfortable with this number and that you can make monthly payments on time every month. If this amount makes sense to you, it can be a very convenient loan for your business.

Ferdies Financial financial loans: fair interest rates

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While interest rates are a crucial aspect in any commercial loan, there are many other factors that you should consider when applying for a loan. At Ferdies Financial, our interest rates are fair because we offer many advantages that other traditional financial institutions do not offer:

  • We do the calculations to make sure that the return on investment you will get from your loan will far exceed the cost of the loan itself.
  • There are no surprises: your monthly payment is fixed and will never change.
  • We do not charge any other fees, and you can pay your loan in full at any time without penalty for prepayment.
  • As we have seen, after only 9 months of payments on time, you can qualify to reduce your interest rate.
  • We assign you the financial solution that best suits the specific needs of your business and we make sure that you feel comfortable with the monthly payments.
  • You will not have to worry about risking your personal assets or those of your company, because we will not ask you to guarantee your loan.
  • You can count on us if your request has been rejected by a traditional bank, because we have fewer requirements than most banks. We do not close the doors to any business!
  • You can use your ITIN if you do not qualify for a Social Security Number.
  • You do not need to have a credit history to qualify for a commercial loan with us.

Above all, the Ferdies Financial customer service is fully customized. We are proud to establish strong and lasting relationships with our members. Our loan experts are bilingual and we offer educational resources and materials in Spanish to improve your financial performance and grow your business. We understand the unique challenges faced by small business owners, and we strive to work with you to make your business prosper.

All these reasons justify the fact that Ferdies Financial interest rates are slightly higher than in some traditional financial institutions. In fact, and taking into account everything we offer with our commercial loans, we can guarantee that our interest rates are not high, but FAIR. In short, the additional cost compensates for everything you can get with one of our commercial loans, and that you won’t get using a traditional bank.

It is important that you know whether the interest rate of a commercial loan is fair.

Apply now for your commercial loan with Ferdies Financial: you can complete the process completely online. In just a few minutes, you will see what loan and interest rate you qualify for, and you can get your commercial loan in no time. What are you waiting for to grow your business?

How can a commercial loan help your seasonal business?

Do you have a seasonal business? This data interests you: Forbes Magazine in 2018 published an article denying the myth that seasonal companies do not survive for long. In fact, data from the Small Business Association (SBA) indicated that seasonal businesses, which are characterized by high and low sales periods, managed to grow thanks to a commercial loan and found ways to diversify their income. These seasonal businesses also managed to take measures to increase cash flow and not suffer cash shortages during the rest of the year.

12 Ways to use a commercial loan to invest in your seasonal business

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Those companies that experience cyclical sales during the year can avail themselves of a commercial loan that will provide them with income with which to pay regular expenses and that serve as working capital.

  • A commercial loan can help you keep your cash flow stable: When you’re looking for solutions to your typical cash flow problems, you should keep in mind that there are two types of seasonal business. First of all we have those businesses that only open during the high season, such as an ice cream truck located in a coastal city or a ski school academy that only operates in winter. The second type of seasonal business, although open all year, only experiences a peak of activity during the high season. Here are some examples: an accounting firm that has more work during the tax season, a restaurant on the waterfront or a sporting goods store specializing in swimming and diving equipment. Regardless of the type of industry, these companies experience greater cash flows in one part of the year and lower cash flows in other occasions. Applying for a commercial loan at the beginning of the high season and returning it at the end is a very useful strategy for this type of business. Your goal in obtaining the loan is to have a constant supply of cash flow during abnormally high or low seasons.
  • A commercial loan can help you prepare for the highest volume of customers and sales during the high season: For example, food trucks, golf or swimming clubs, or souvenir shops are busier during the summer months, that attract a constant influx of customers. These companies need more money to compensate for the rising costs and to continue providing the same quality of products and services as during the rest of the year.
  • A commercial loan can help you stock up on inventory: Your inventory varies throughout the year, and you will need to have more inventory during the high season. A commercial loan can provide you with the necessary funds to keep your inventory levels constant during the high season, as well as in the coming months.
  • A commercial loan can help you pay your employees throughout the year : If you hire a full-time manager or staff in your customer service department, you will need funds to pay them all year. A commercial loan can help you cover your payroll during the slowest periods.


A commercial loan can help you hire seasonal employees:

A commercial loan can help you hire seasonal employees:


  • Sales are usually higher during peak seasons and specific days such as Black Friday, Christmas and other holidays. On those dates you need to make sure you have enough staff to serve your customers. You can therefore get a commercial loan to hire extra staff during the high season . Do you need to refresh your human resources skills? Read this article how to hire employees to find the best staff and comply with the law.
  • A commercial loan can help you make improvements and remodeling during the low season: With the funds of a commercial loan you will have enough money to, for example, upgrade your gym equipment or buy more tools for your landscaping business. Do you close during winter? It is the perfect time to renew your space or the facade of your store. When you open the doors again at the beginning of the high season, your customers will undoubtedly be attracted to the new look of your business.
  • A commercial loan can help you invest in marketing campaigns. You should know how to attract new customers even before the high season arrives. You can hire the services of a marketing company or invest in digital marketing to optimize your website, develop a social media marketing strategy or create content that talks about your product or service. It is also advisable to conduct marketing campaigns during slow seasons to prevent sales from falling too much.
  • A commercial loan can help you invest in technology. Technology changes rapidly; That’s why you need to invest in software updates that keep your business up to date. The point of sales (POS) and customer management (CRM) systems are especially useful for seasonal companies that expect high volume of customers in the high season. An intranet system may also interest you because it allows your employees to connect to your company’s network wherever they are.
  • A commercial loan can help you with general expenses: Expenses such as public services (water and electricity), rent, Internet, insurance, etc., are normally paid each month. A commercial loan will guarantee that you have sufficient funds to make these payments always on time.
  • A commercial loan can help you pay or renew permits and licenses: Your company cannot operate legally unless you pay for the commercial permits and licenses that apply. You can use commercial loan funds to cover these expenses without jeopardizing the future of your business.
  • A commercial loan can help you generate income during your low season: You can use the funds from a commercial loan to continue to meet the demand for products and services during the low season even if it is less, so you can continue to have new income. With the loan funds you can even diversify your services by going beyond those that are typical of summer. Do you remember that above we mentioned an ice cream truck? How about turning it into a food truck that offers hot coffee and freshly made donuts when the summer season ends?
  • A commercial loan can help you with unexpected expenses . You must be properly prepared for the unexpected. After a whole winter without being used, has your equipment oxidized? Has a tropical storm caused damage to your facilities? A commercial loan can help you in similar circumstances.

Carylas Financial business loans: the help your seasonal business needs

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Carylas Financial offers commercial loans that fit your needs and goals. As a seasonal business owner, you may be interested in short-term loans, as you can pay them in a shorter period of time. You can pay your loan in 24 months or pay it in full early if you wish, and with no prepayment. If you request a microcredit, you can receive the funds in a period of only 2 to 4 days, and if you request a commercial loan, you must wait a maximum of 10 days. Other attractive features are fixed monthly payments, the freedom to use funds with very few restrictions and a convenient and easy application process. Complete this simple online application to begin the process and receive personalized assistance from a business loan specialist who will help you find the best financing option for your seasonal business.

You can keep your seasonal business with a commercial loan

If your company lacks funds, a commercial loan will provide you with capital when you need it most. Even if you close your doors during the low season, you will most likely have ongoing expenses for the rest of the year. Therefore, a loan will sustain your business when you don’t have a steady stream of income. Remember that it is a good strategy to apply for a commercial loan before the high season begins, or as we discussed above, to cover payroll and other expenses during the rest of the year. You will guarantee business success regardless of the season you are in, since you will always have the necessary funds.