Before you sign

Fees

Ask for every fee in dollars: origination, draw, maintenance, late, and anything due at payoff. A payment that looks manageable can sit next to fees that change the total.

On a merchant cash advance, ask for the purchased amount in dollars. A factor rate is not an APR and does not belong in the loan calculator on this site.

Personal guarantees

A personal guarantee makes an owner responsible if the business does not pay. It can reach personal savings and, depending on the contract and state law, other personal assets. A guarantee is not the same thing as collateral, and a business name on the account does not remove it.

Collateral

Collateral is property the lender can claim. Equipment, invoices, and a commercial building are different kinds of collateral. A home equity line uses a home and is not part of the business application.

Read what happens after a missed payment: repossession, foreclosure on a commercial property, or a demand for the rest of the balance.

Prepayment

Paying early does not always reduce what you owe. Some agreements rebate unearned interest. Others keep a fee or most of the original cost. Ask for the payoff amount on a specific date before you refinance.

Payment frequency

Monthly, weekly, and daily pulls do different things to the cash left for payroll and suppliers. A lower monthly number can still be a larger total if the term is longer. The calculator shows both, and it does not call the difference savings.