To compare business loan costs, ask each lender for a written repayment schedule for the same loan amount and term. Check how much your business receives, the number and timing of payments, and the total amount to repay. Separate repayment of the amount borrowed from interest and fees. A monthly payment alone does not show the full cost.
Check whether the price uses interest, a fixed loan fee, or a combination. Ask which fees apply at the start and during the loan, whether the price can change, and what happens if you repay early or miss a payment. Review any security or personal guarantee and assess whether repayments fit your business’s cash flow. Use the lender’s individual offer and agreement for the actual price and conditions.