What fees come with a business loan?
The most common are an origination or underwriting fee, a documentation or closing fee, a prepayment charge, late fees and, on lines of credit, draw or annual fees. Ask each lender for a written list.
Loan Guide
What fees come with a business loan?
Common business loan costs are an origination or underwriting fee, a documentation or closing fee, a prepayment charge, late fees and, on lines of credit, draw or annual fees. The way to compare offers is to ask for the total you will repay and the amount you will actually receive after fees. lendfloCapital charges business owners no fee to apply.
Decision in 24 hrs
Zero cost to apply
Soft pull only
All credit profiles
Key facts
- Ask for total repayment and net proceeds in writing
- Origination and documentation fees are often taken from the funds
- Factor-rate products usually do not get cheaper if you pay early
- No fee to apply with lendfloCapital
| Financing type | Business Financing |
|---|---|
| Typical amounts | Term loans $25K–$2M; equipment financing $10K–$500K |
| Decision time | As fast as 24 hours |
| Credit | All credit profiles considered; soft credit pull to start |
| Cost to apply | Zero cost to apply |
| Who we are | A business financing broker. We compare offers from our lender network; we are not a direct lender. |
In detail
The fees you may see
Not every lender charges every fee, and the same fee can have different names. These are the ones to look for in an offer.
- Origination or underwriting fee: a one-time charge for processing the loan, often taken out of the money you receive
- Documentation or closing fee: covers paperwork and, on secured loans, filing a lien
- Prepayment charge: a fee, or a fixed cost you still owe, if you repay early
- Late or returned-payment fee: charged when a payment is missed or bounces
- Line of credit fees: some lines charge a fee per draw, a monthly fee or an annual fee
In detail
How to see the true cost
Add up everything you will repay. Subtract what you actually receive after any fee is taken from the proceeds. The difference, divided by the amount you receive, is your cost as a percentage. Then look at how long repayment takes: the same cost spread over three months is far more expensive per year than over two years.
In detail
Fees and factor rates
Some short-term products use a factor rate instead of interest. The total repayment is fixed up front, so repaying early usually does not lower what you owe. A $50,000 advance at a factor of 1.3 means you repay $65,000 however quickly you pay it.
In detail
Questions to ask before you sign
Ask every lender the same questions so the offers can be compared side by side.
- What is the total amount I will repay, and what will I receive after fees?
- Which fees are taken from the proceeds and which are added later?
- Is there a charge for repaying early, and does paying early lower the total?
- What happens, and what does it cost, if I miss a payment?
Preparation checklist
What to have ready before applying for business financing
Reading a guide is step one. Use this checklist to prepare before moving into a funding review.
- Know the specific amount needed and the business reason
- Have 3 months of business bank statements available
- Confirm monthly revenue and time in business
- Understand which product type fits the use of funds
- Be ready to describe the business model clearly
- Know whether the need is short-term, asset-based, or longer-term
Checklist ready? Apply in under 5 minutes.
Approval decisions in 24 hours. An advisor matches your profile to the best lender.
Product paths
Where to go next: business financing options
A strong guide should move readers into the product or process page that fits their need.
What is a factor rate?
How to choose a business lender
Business term loan rates
Business loan terms
See which option fits your business best.
No-cost advisor match — no hard pull, same-day response.
Compare
What to compare before choosing business financing
Owners should compare fit, cost, timing, payment burden, documentation, and how each option supports the business goal.
- Fit with use of funds
- Total repayment
- Funding speed
- Documentation
Know your options. Apply for the right one — at no cost.
An advisor compares lender options for you. Same-day response.
Do I qualify?
Who typically qualifies for business financing
Most business owners who research this topic are eligible to begin a review. Here is what usually qualifies and what owners should not worry about.
Who qualifies
Businesses open 6+ months with active banking history
Monthly revenue of $10K or more across most products
All industries and business types considered
All credit profiles welcome — score is not the only factor
Don’t worry about
Collateral is not required for many funding options
No application fee — at no cost to find out if you qualify
Previous declines at other lenders are not automatic barriers
Partial or imperfect files are still worth submitting
You may already qualify — check your options at no cost.
No hard credit pull. Apply in under 5 minutes. All credit profiles welcome.
What it costs
How much does it cost to apply for business financing?
Applying through lendfloCapital after reading this guide is at no cost. There are no fees for business owners at any step of the process.
- At no cost to business owners — no application or review fee ever
- lendfloCapital earns from lenders only on funded matches
- Soft credit pull only — no hard inquiry during the review
- All pricing and terms disclosed before any commitment is made
- No surprise fees at any stage from application to funding
Zero cost to apply. Transparent rates from day one.
No hidden fees. A real advisor walks you through every number.
Apply
Move from the business financing guide into real options
lendfloCapital gives owners a short path from reading to reviewing practical funding options.
- No cost to apply
- Soft credit pull to start
- Fast review
- All credit profiles considered
Common questions
Frequently asked questions
What is an origination fee?
A one-time charge for processing and underwriting a loan. It is often taken out of the money you receive, so you repay more than you get.
Do all business loans have a prepayment penalty?
No. Some loans let you repay early and save interest, while some products with a fixed fee or factor rate do not reduce the total owed if you pay early. Check the contract.
Does lendfloCapital charge a fee to apply?
No. There is no cost to apply, and lendfloCapital is paid by the lender when a financing match is funded, not by the business owner. Lender fees still apply, so compare the total repayment on each offer.
Written by lendfloCapital Editorial Team · Last updated
lendfloCapital is a business financing broker, not a lender. This page is general information, not financial, legal or tax advice. Rates, amounts and terms depend on the lender and your business.
How we write and check our pages · Source links last checked
Official sources for further reading
- SBA 7(a) loans (U.S. Small Business Administration)
The SBA's most common loan program, with uses that include working capital and equipment. - SBA loan programs (U.S. Small Business Administration)
Overview of the government-backed 7(a), 504 and microloan programs offered through participating lenders. - Small Business Credit Survey (Federal Reserve Banks)
Annual research on how small businesses apply for, receive and use financing.
lendfloCapital
Get funded in 24 hours.
America's fastest business financing broker. Zero cost for business owners. All credit profiles welcome.