Free tool
Loan offer comparer
Weekly against monthly, fees deducted against fees added, one year against three. Put up to three offers on the same footing in seconds.
General estimate only. Not an offer of finance. Check every figure against the written offer.
Why business loan offers are so hard to compare
Lenders present offers in whatever way suits their product. One quotes a weekly repayment over 12 months with a fee taken out of the payout. Another quotes a monthly repayment over three years with fees added on top. A third quotes a daily debit. None of them is lying, but none of them is directly comparable either. This comparer puts every offer into the same four measures.
The four measures
- Total repaid: every repayment, plus other fees, plus any balloon.
- Cost of finance: total repaid minus the money you actually receive. This is the single best number for comparing cost.
- Cost per $1 received: the cost of finance divided by the money received. Useful when offers are for different amounts.
- Monthly equivalent: the regular repayment converted to a monthly figure, so you can test it against your cash flow.
Our page on the total cost of a business loan explains the method in more detail, and repayment frequency covers the conversions.
How to use the result
Start with cost of finance: lower is better. Then check the monthly equivalent against your quietest month. An offer that's cheapest overall but needs a repayment you can't carry in a slow month isn't the right one. Among the offers that pass both tests, compare what each asks of you in security and guarantees and whether you could repay early without losing the saving.
An illustrative example
The two offers pre-filled above are illustrative. Offer A pays out $48,500 after a fee and takes $1,150 a week for a year. Offer B pays out $50,000 and takes $1,820 a month for three years. Offer A costs about $11,300 in finance, Offer B about $15,520. But Offer A's monthly equivalent is close to $5,000, nearly three times Offer B's. A business with strong, steady cash flow might choose A to save money; a business with thinner months might choose B and accept the higher cost for breathing room.
What the comparer can't see
It can't read the fine print. Security, covenants, default terms, conditions and payout rules all matter, and they're set out in the letter of offer. Use the numbers here to narrow the field, then read the letters of the offers that are left.
Want offers that are worth comparing?
If you don't have offers yet, or the ones you have don't look right, we can help. Asking doesn't touch your credit file; a check only comes up once you decide to go ahead. We don't pass your details around a crowd of lenders. A real person brings you options that suit your business and lays them out on these same measures. Please fill in the form accurately so the offers we compare are ones you can actually get. Start your enquiry.
Frequently asked questions
What should I enter as the money I receive?
The amount actually paid to you or your supplier after any fees deducted at settlement. If an establishment fee is taken out of the loan, enter the smaller net figure, because that's the money you really get.
Where do I find the number of repayments?
In the offer or letter of offer. If it isn't stated, work it out from the term: weekly over a year is 52, fortnightly is 26, monthly is 12. Business-day repayments are roughly 250 a year, but check the offer.
What counts as other fees?
Any fee you pay that isn't already built into the repayments or deducted from the payout: monthly account fees over the whole term, valuation, legal, line or discharge fees.
Why does the comparer show cost per dollar?
It tells you how much you pay in finance costs for every dollar you actually receive, which makes offers of different sizes easier to compare.
Does it work for lines of credit?
Only roughly. A credit line's cost depends on how much you draw and for how long. Estimate your typical drawn balance and fees over a year and enter them as a single offer.
Is anything I enter saved or sent?
No. The comparer runs entirely in your browser and nothing is stored.
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