When you are running your own business, you know you need to make every penny count. You have tried negotiating great prices on your office supplies, you have the best perks on your business credit card, but have you thought about trying to get a low interest rate on your commercial loan? Over the course of the loan term, you can save thousands in interest payments by getting that lower rate. Let’s look at how you might be able to accomplish this.One of the most common ways you can get a great interest rate is to look for and take out a Small Business Administration loan. There are commercial real estate loans as well as other types of loans that are backed by the SBA. This means that your risk factor considered by the bank is lower thanks to their backing. You won’t have to come up with such a large down payment and you can finance the loan over a longer term, both of which will be helpful for your current and future cash flow.If you have a very valuable collateral item you are putting up, you can also realize a significant savings on your interest rate. Since you will be financing less, your risk is lower, so banks will want your business more. It also holds true when you are financing capital equipment, because the equipment itself is the collateral – what would be sold should the loan be called. The ratio of loan to value of the items purchased is low, and therefore helpful to you.You can also try to negotiate your terms with your bank, particularly if you have a profitable business and your personal credit score is high. Consider applying at between 10-12 institutions. When you apply at several lending institutions, you end up with all of them competing over you. Isn’t it nice to be so wanted?That said, the best place to get a loan with a lower interest rate is from a bank. They often already have a relationship with you and they can use that when they are evaluating your credit-worthiness. If they know you are a solid client, that can go a long ways with the lender.A demonstrated track record of profitability and a solid business plan are essentials no matter where you go to get your loan. Also, if you need to purchase quite a lot of equipment but you don’t have a great credit history or long track record, you may want to consider lowering the amount you are requesting and purchase your items in stages. This will give you the opportunity to build a history that will make banks look more favorably on you.Conversely, you will have a harder time getting approved and getting the interest rate you want if you ask for a higher loan amount without the ability to demonstrate your credit worthiness.You may even find when you go to get your commercial loan that the right solution is actually a mix of these ideas. When you find the combination that is the right one for you, go for it!