How to compare business funding offers on net proceeds, total repayment, payment frequency, and cost per dollar received.
Two offers for the same amount can cost very different amounts. Compare them on a consistent basis.
What to compare
- Net proceeds: amount received after fees deducted.
- Total repayment: everything you'll pay back.
- Cost of capital: total repayment plus fees minus amount funded.
- Cost per dollar: cost of capital divided by net proceeds.
- Payment and frequency: the monthly equivalent and its fit with cash flow.
- Term and prepayment terms.
Use the funding offer comparison calculator to see two offers side by side.
This article is for general educational purposes only and is not legal, tax, or financial advice. Consult a qualified professional about your specific situation.
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