Business loan fees to be aware of
Fees can make a big difference to the cost of business finance, which is why it pays to compare your options beforehand. Making sure you understand the fees associated with a loan will ensure that there are no surprises or unexpected costs involved that you haven’t budgeted for.
The Credit Savvy Team have rounded up some of the fees and costs associated with business loans to be aware of before you apply.
1. Establishment/Upfront fee
An establishment fee or upfront fee is charged when the loan or overdraft facility is set up. It is a one-off fee and can vary with the size of the loan.
2. Interest rate
The interest rate is the interest you pay in return for borrowing money. It is calculated on the balance of the loan or overdraft.
3. Ongoing fee
The ongoing fee is charged by the lender on a weekly, monthly, quarterly, or annual basis for the administration of the loan or overdraft facility. Ongoing fees are generally a fixed amount or percentage of the loan.
4. Early repayment fee
The early repayment fee is charged by some lenders when you make additional repayments and pay off your loan early.
If you think it might be time to expand your business, Credit Savvy can help you compare a range of business loan providers to find the right product for you and your business. Check out our business loans page today!