Often used for
- Owners comparing structures before applying
- A documented business purpose
- Borrowers who want to model repayment first
Check closely
- Headline rates without total cost
- Guarantees and liens
- Payment frequency
- Provider-specific eligibility
Live funding benchmarks
Request-driven refresh every 6 hours, with dated fallbacks when a source cannot be reached.
60%Applied for financing
42%Received all financing sought
57%Small-bank full approval
60%Online borrowers reporting higher cost than expected
Program ceilings are calculated from the latest prime observation and SBA's published variable-rate margins, not a lender quote. SBA loan-level dataset shown as of 2026-03-31; catalog checked 2026-07-08. Rate source ↗ SOFR ↗ SBA rules ↗ SBA data ↗ Credit survey ↗
Start with the business need
Define the amount, date required, use of funds and expected cash return. Those four facts narrow the product set before any lender markets an offer.
Compare like with like
For business loan interest rates, put cash received, total repayment, term, payment frequency, fees, security and early-pay treatment into one table. The lowest advertised rate is not useful when products use different cost formats.
Check the downside
Model the payment against a weak month and include existing debt, payroll and tax obligations. Financing should bridge or fund a defined business outcome, not hide a recurring operating loss.
Worked funding decision
A business needs $75,000 for a documented project expected to produce cash over three years.
Target$75,000
ComparisonThree complete written offers
Stress testWeakest recent revenue month
Run the math. The owner records net cash, total repayment, term, payment frequency, fees, guarantee, collateral and the payoff amount after one year.
Decision. The suitable offer is the one whose contract and repayment source fit the project, not necessarily the result with the fastest approval or largest ceiling.
Start with the legal structure
APR, simple interest, factor rates and monthly fees describe different cost systems.
Marketing categories often mix the use of funds with the contract. Working capital describes what the money does. A term loan, revolving line, lease or receivables purchase describes the obligation. Keeping those labels separate stops a fast sales pitch from turning unlike products into one rate table.
Put price on one clock
Convert every offer into net cash, total dollars, term and payment frequency.
A 1.25 factor is $25,000 on $100,000 before fees. It is not automatically a 25% APR because the repayment period is missing. The example is not a market quote. It shows the arithmetic an owner should run with the actual amount, payment dates and fees from a written offer.
Repayment and security
The same annual rate can feel different under monthly and daily collection. A low rate may be tied to stronger collateral and guarantees.
Run the proposed schedule through a low-revenue month. Keep taxes, payroll, rent, suppliers and existing debt in the forecast. If the business needs another advance merely to carry the new payment, the amount or product is wrong.
A five-column comparison before applying
Decision rule
Reject any comparison that lacks both dollars and time.
Before submitting bank data, write down the amount required, date needed, expected cash return and maximum safe payment. Those four facts will eliminate more poor offers than a long list of advertised lender limits.
Documents and questions that change the answer
Use one clean set of numbers. Revenue on the application should reconcile with bank deposits and the profit and loss statement, with short notes for taxes, transfers or unusual receipts. List every existing payment and UCC filing. Inconsistent figures create avoidable questions and can make two offers impossible to compare on equal facts.
Keep a simple decision sheet with the amount requested, cash received, total obligation, payment dates and payoff figure at two points in the term. Add the provider's legal name and the date each source was checked. That small record is more useful than a folder of promotional emails when a broker calls back with a revised offer.
Keep the first comparison small enough to read. Three written offers are more useful than ten callbacks with missing figures. Reject any result that will not identify the provider, total obligation or payment schedule before acceptance, then spend the saved time checking the agreements that remain.