Quick answer
To compare business loan quotes fairly, convert each into the same measures: the cash you actually receive, the total amount you repay, the total cost of finance in dollars, the cost per dollar received, the repayment schedule and the terms for early repayment and default. Business loans often lack standardised cost disclosures, so dollar totals are the clearest basis for comparison.
Key points
- Compare cash received, total repaid and total cost
- Cost per dollar received levels out different sizes
- Check repayment frequency against your cash flow
- Early repayment and default terms matter too
Three quotes, three formats. One shows a weekly repayment. One shows a fee and a monthly figure. One talks about a factor. Comparing them directly is almost impossible until you convert each into the same set of numbers.
The five numbers to extract from every quote
- Cash received: the amount that actually lands in your account after any upfront fees or prepaid interest.
- Total repayable: every repayment over the term, plus any end-of-term payment or fee.
- Total cost of finance: total repayable minus cash received.
- Cost per dollar received: total cost divided by cash received.
- Repayment schedule: daily, weekly, fortnightly or monthly, and how much each time.
The repayment calculator works out the repayment figures and cost per dollar from a quote’s total cost.
A worked comparison (illustrative)
| Quote A | Quote B | Quote C | |
|---|---|---|---|
| Cash received | $95,000 | $100,000 | $100,000 |
| Total repayable | $112,000 | $118,000 | $121,000 |
| Total cost | $17,000 | $18,000 | $21,000 |
| Term | 12 months | 12 months | 18 months |
| Cost per $1 received | $0.18 | $0.18 | $0.21 |
| Repayments | Daily | Weekly | Monthly |
Quote A and B cost about the same per dollar. Quote C costs more in total but spreads repayments further and collects monthly, which may suit a business with lumpy cash flow. The cheapest quote is not automatically the best fit.
Not sure this fits your business? That is exactly what the quick enquiry is for. One team reads it, no credit check runs, and nothing is sold on.
Beyond cost
| Factor | Question to ask |
|---|---|
| Flexibility | Can I repay early, and does it save money? |
| Repayment frequency | Does it match how cash comes in? |
| Security and guarantees | What is at risk? |
| Fees after approval | Line, account keeping, dishonour fees? |
| Speed | When will funds actually arrive? |
| Default terms | What happens if a repayment is late? |
Early repayment can change everything
Some short-term loans charge the full agreed cost even if you repay early. Others reduce the cost. If you expect to repay ahead of schedule, a slightly more expensive loan with a genuine early repayment saving may cost less overall.
Ask for it in writing
A reputable lender will state the total amount repayable and all fees in writing. If a quote is vague, ask for it to be restated. Our guides to loan fees and total cost of finance explain what to look for.
Put it in a simple table
Line up every quote in a spreadsheet with the same rows: cash received, total repayable, total cost, cost per dollar, term, repayment frequency, early repayment terms and security required. Seeing the offers side by side makes the trade-offs obvious, and it makes it easier to go back to a lender and ask whether they can improve one part of their offer.
- Total cost of finance, explained: Total cost of finance is everything you repay above what you receive. How to calculate it from any quote and use it to judge whether a loan is worth it.
- Business loan fees to ask about: The business loan fees that are easy to miss: establishment, line, account, dishonour, default, early repayment and discharge fees, and how to compare them.
- Non-bank business lenders: what to check first: What to check before borrowing from a non-bank business lender: who they are, total cost, fees, early repayment, security, guarantees and complaints.
- Short term vs long term business loans: Short term vs long term business loans: how term length changes repayments, total cost and risk, and how to match the term to what the money is for.
Terms used in this guide
- Personal guarantee: a promise by a director or owner to repay a business debt if the business does not.
- Total cost of finance: the dollar gap between the cash that reaches your account and everything you hand back over the life of the loan, fees included.
- Prepaid interest: interest for an agreed period settled at the start of a loan, usually out of the advance, leaving nothing to pay for that period.
Check these before you commit
- What will this cost in total, not just per week?
- Are there establishment, line or exit fees?
- Can the term be extended if a sale or refinance is delayed?
- Which assets or properties are being used as security?
- How quickly can the facility be closed if I no longer need it?
Advice worth getting
Funding decisions often have tax, legal or family consequences. Talk to your accountant about how repayments, interest and any asset purchases will be treated, and to a lawyer if property, guarantees or a change of structure are involved. Getting advice before you sign is far cheaper than unwinding a decision afterwards, and it usually makes the application stronger too.
Key takeaways
- Compare cash received, total repaid and total cost
- Cost per dollar received levels out different sizes
- Check repayment frequency against your cash flow
- Early repayment and default terms matter too
How the process runs
After you enquire, a real person picks up your details and calls to talk through the purpose, the timing and how the money will be repaid. Unsecured funding is assessed mainly on bank statements and turnover. Property-secured funding is assessed on the property, with no valuation required, and interest can be prepaid or added to the loan. You see the total cost before you commit, and the credit check only happens once you decide to proceed. If the timing is tight, tell us the deadline on the first call so the work can be planned around it.
When borrowing helps, and when it does not
Good borrowing has a job and an end date. Before you enquire, write down in one sentence what the money is for and how it will be repaid. If that sentence is easy to write, you are probably in the right place. If it is not, it is worth a closer look at the business’s cash flow before taking on new repayments.
Paperwork worth gathering
Have these within reach and the process moves quickly, because each one answers a question the assessor would otherwise have to come back and ask:
- ABN, business structure and how long you have traded.
- Recent business bank statements, ideally shared online.
- What the money is for and how it will be repaid.
- Any tax debt, default or arrears you should mention up front.
- Contact details for anyone else who would need to sign.
About the questions we ask
Late surprises are what slow funding down. A second property owner nobody mentioned, turnover that is lower in the statements than on the form, an amount that doubles after the first call: each one sends the assessment back to the start. If you tell us the full story at the beginning, even the awkward parts, the file only has to be worked through once.
Take the next step
To see what is available for your business, complete the 60-second enquiry. It is free, there is no credit check and it goes to one team, not a lead marketplace. Please be precise with the amount, turnover and credit history. Those answers shape everything that follows, and getting them right is the single best way to get a fast, useful answer.
Frequently asked questions
Why can't I compare business loans by interest rate?
Lenders present costs differently and often include fees outside the rate. Business loans also generally skip the standardised cost disclosures consumer loans carry. Total dollar cost is clearer.
What is cost per dollar received?
The total cost of finance divided by the amount you receive. It lets you compare loans of different sizes and terms.
Should I always choose the cheapest quote?
Not necessarily. Flexibility, repayment frequency, speed and early repayment terms can matter as much as cost.
How do I compare a loan with prepaid interest?
Work out the cash you receive after prepaid interest and fees, and the total repayable at the end.
Can I ask a lender to restate a quote?
Yes. Ask for the total amount repayable and all fees in writing.
Ask right here, it takes a minute
The same 60-second enquiry, on this page. No credit check to enquire, and the person who reads it is the person who calls you.