Business loan fees to ask about

The repayment figure is the number most owners focus on, but it rarely tells the whole story. Fees can add meaningfully to the cost of a loan, and some only appear when something changes. Knowing what to ask about avoids surprises.

Fees charged at the start

Fee	What it is
Establishment or application fee	For setting up the loan
Legal and documentation fees	For preparing loan and security documents
Settlement or registration fees	For registering security, such as a mortgage or caveat
Prepaid interest	Interest paid up front on some property-secured loans

These are often deducted from the loan, so the cash you receive is less than the approved amount.

Fees charged while the loan runs

• Line or limit fees on some lines of credit, charged on the approved limit.
• Account keeping or service fees, monthly or annually.
• Annual review fees on some facilities.

For a line of credit, these matter even when you do not draw the facility. See business line of credit.

Numbers in front of you? Put them in the enquiry and we will tell you plainly what looks realistic. Enquiring does not touch your credit file.

Fees triggered by events

Fee	Triggered by
Dishonour fee	A failed repayment
Default fee or default interest	Missing repayments or breaching terms
Early repayment fee	Repaying ahead of schedule
Variation fee	Changing the loan terms
Discharge fee	Removing security when the loan ends

Early repayment and default fees matter most when plans change. If you might repay early, or if cash flow is unpredictable, read these terms carefully.

How to compare fees across offers

Add every fee you expect to pay into the total cost of finance. For fees that only apply in certain situations, such as early repayment, work out the cost under the scenario you think is most likely. Then compare offers on total cost and flexibility. Our guide to comparing quotes shows how.

Questions to ask

1. Can you list every fee that applies to this loan, in writing?
2. Which fees are deducted from the loan amount?
3. What is charged if I repay early, and how is it calculated?
4. What happens if a repayment is dishonoured?
5. What does it cost to discharge the security at the end?

Keeping fees down

• Keep enough in the account on repayment days to avoid dishonours.
• Choose a facility size you will actually use, to avoid paying line fees on an idle limit.
• Ask whether fees are negotiable for larger or repeat facilities.

Fees on property-secured loans

Property-secured loans often carry legal and registration costs for the mortgage or caveat, and a discharge cost when it is removed. These are normal, but ask whether they are deducted from the loan or charged separately, so you know exactly how much cash will reach your account.

Where to go from here

• 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.
• How to compare business loan quotes: How to compare business loan quotes when lenders present costs differently: total repayable, cost per dollar, fees, flexibility and early repayment terms.
• 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.
• Business line of credit: A business line of credit gives you a limit to draw on and repay as cash flow moves. How it works, what it costs in practice and who it suits best.

A quick glossary

• Line of credit: an approved limit the business can draw, repay and draw again, usually paying interest only on the drawn balance.
• Caveat: a formal warning recorded against a land title, telling anyone who searches it that a lender claims an interest in that property.
• 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.

Before you accept an offer

• 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?

Where your accountant fits in

A good accountant can save you from borrowing too much, too little or in the wrong structure. Share the quote, the purpose and your forecast with them. If they spot something, such as an upcoming tax bill or a better way to structure an asset purchase, it is much easier to adjust before the documents are signed.

Quick recap

• Fees can be upfront, ongoing or triggered by events
• Include every fee in the total cost of finance
• Early repayment and default fees matter most when plans change
• Ask for the full fee list in writing

How Capital At Call handles it

One enquiry, one team, one clear answer. That is the whole approach. We read what you send, call you, ask for the documents that matter and lay out the options in plain English with the total cost attached. Your details are not shopped around, and your credit file is only checked if you choose to accept an offer. If the answer is no, you will hear it quickly and with a reason, so you can plan your next move.

Funding or another fix?

Funding works best when three things are true: the need is specific, it is temporary or it pays for itself, and there is a clear source of repayment. If all three hold, the right loan can take real pressure off the business. If the business is losing money month after month with no change in sight, borrowing only postpones a harder decision, and we would rather say so than arrange a loan that makes things worse.

Getting your details together

A little preparation makes the first conversation far more useful, and it means the person who calls you can talk about options rather than chasing basic details:

• Your ABN and the legal name of the business.
• Online banking access, so recent statements can be shared through a secure read-only link.
• A rough figure for monthly turnover and the amount you need.
• A list of current loans and repayments, including any ATO payment plan.
• If property is involved, the address and roughly what is owed on it.

A quick word on the enquiry form

The enquiry asks for the amount, the purpose, how long you have traded, your monthly revenue, your credit history, your state and whether you own real estate. Each answer steers your enquiry towards the right option. Accurate answers let the first call move straight to solutions. Rounded-up turnover or a credit history that turns out to be different from the form means starting again, which costs everyone time.

Ready to check your options?

It costs nothing to find out. Check your eligibility in about a minute, with no credit check and no obligation. One team handles your enquiry from start to finish, and you will hear from a person, not an automated system. Fill the form in as accurately as you can; a careful minute now saves days later.