Running a trade business comes with its fair share of expenses—tools break, trucks need upgrades, and big jobs sometimes require upfront capital. When you need quick cash to keep things moving, a loan can be a lifesaver. But before you take on any kind of financing, there’s one number that should never be overlooked: APR.

What Exactly Is APR?

APR stands for Annual Percentage Rate. It’s not just another fancy financial term—it’s your best tool for understanding the true cost of borrowing.

Unlike the interest rate, which only shows the cost of borrowing money from the lender, APR includes everything you’ll pay annually for the loan:

• Interest rate
• origination fees
• Broker fees
• Other charges or services fees

This means a loan with a low interest rate but high fees might cost you more than a loan with a higher interest rate and no added charges.

For example:

Loan A: 6% interest rate + 3% in fees = 9% APR

Loan B: 8% interest rate + 0% fees = 8% APR

Loan B is cheaper, even though the interest rate looks higher.

That’s why APR is the number to watch.

Why APR Matters for Trade Professionals

As a trade pro, whether you’re a roofer, plumber, HVAC technician, or general contractor, you need capital to grow. But many traditional loans aren’t built with your unique needs in mind.

You might get flashy offers that advertise “as low as 5% interest,” but unless you read the fine print and calculate the full APR, you could be stuck with hidden costs that eat into your hard-earned profit.

Bottom line: When comparing loan offers, always compare APR to APR, not just interest rate to interest rate.

Ask your lender:

“What’s included in the APR?” If they can’t explain it clearly, that’s a red flag.

How Kraftworks Is Changing the Game

At Kraftworks, we believe trade professionals deserve better. We’re building funding solutions that are transparent, easy to understand, and tailored for your day-to-day needs. But to build something that truly serves the trade community, we need your voice.