{"id":245243,"date":"2026-05-06T15:00:38","date_gmt":"2026-05-06T15:00:38","guid":{"rendered":"https:\/\/evertise.net\/?p=133431"},"modified":"2026-05-06T15:00:38","modified_gmt":"2026-05-06T15:00:38","slug":"how-to-lower-overall-borrowing-costs-for-your-business","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2026\/05\/06\/how-to-lower-overall-borrowing-costs-for-your-business\/","title":{"rendered":"How to Lower Overall Borrowing Costs for Your Business"},"content":{"rendered":"

If you\u2019re a small business owner looking to grow your company or if you simply need help covering day-to-day operating costs, you may be considering borrowing money. Particularly if you have limited or erratic cash flow, you\u2019re probably acutely aware of what you could do with additional funds. But as you consider your next steps, you\u2019ll also want to think through the cost of borrowing, including interest, fees and the size of your repayments.<\/p>\n

Keep reading to learn about different ways to lower your overall borrowing costs.<\/p>\n

Calculate how much you need \u2014 and can afford \u2014 to borrow<\/h2>\n

The amount you borrow doesn\u2019t just affect how much you\u2019ll pay in interest and fees, it also affects the size of your payments, which can impact your monthly budget. As a first step, carefully consider exactly what your expenses are, how much you owe on existing loans, whether you have any outstanding debts or vendor payments and how you plan to use the money you borrow. You\u2019ll also want to take a hard look at your cash flow to make sure you can afford the payments and overall cost of borrowing \u2014 without leaving you worse off.<\/p>\n

But how much you borrow is only part of the puzzle. It\u2019s also important to think about how you want to borrow, and why.<\/p>\n

For everyday or fluctuating needs, consider a credit card or line of credit<\/h2>\n

With a low-interest business credit card<\/a>, you can take advantage of flexible borrowing while keeping your overall borrowing costs low. A credit card can be a convenient way to preserve your spending power when your cash flow is uncertain, because you don\u2019t need to pay off your balance every month. And with a credit card with a low interest rate, you\u2019ll owe less interest on the balance you carry over.<\/p>\n

If you\u2019re unsure about which credit card is right for you, shop around to compare potential annual percentage rates (APR), fees, rewards and other perks. Even a small percentage point of difference in your APR could save you a considerable amount of money over time, and the right kind of rewards might help you save money on travel or pay down your balance more quickly.<\/p>\n

Some business credit cards also offer additional support to cardmembers. For example, with a CIBC bizline\u00ae Visa card, you can manage your expenses and cash flow online with their financial tracking tool, making for a more seamless way to keep tabs on where your money is going.<\/p>\n

A line of credit works similarly to a credit card. You\u2019re approved for a credit limit, against which you can borrow as needed. However, a line of credit typically comes with an end date, after which you must repay your entire balance. A line of credit may come with a lower APR than a credit card or some loans, but the repayment term can be relatively short, so you\u2019ll need to be prepared to make those payments when the time comes.<\/p>\n

For one-time capital expenditures or debt consolidation, consider a loan<\/h2>\n

If you\u2019ve got a single large expense to cover, it may make more sense to borrow the funds up front through a loan, as loans typically have lower interest rates than credit cards and lines of credit.<\/p>\n