How do you assess offers for Business Lending properly?

Selecting the best business lending offer will affect your long-term financial position. Below are tips to help you assess offers and keep your focus on business:

Compare Interest Rates: Always compare fixed rates and variable rates. You’ll save more with the lower rate over the term of the loan.

Understand the Total Cost of Borrowing: Put your overall consideration into costs and charges, as well as total repayment, not just the monthly payment amount.

Assess Repayment Terms: Look at how long you're borrowing for, your repayment obligations, flexibility with repayments, penalties or fees for early repayments, and the total time you intend to have the terms you expect for your current cashflow.

Liability: Consider the Reputation of the Lender: Consider the lender, who they are and their reputation and experience with businesses of a similar kind to yours.

Consider Funding Speed: Evaluate how fast the lender can provide funds. Depending on your immediate requirements, quick access may be more critical.

Consider Collateral Requirements: Determine what collateral or personal guarantees are required before you commit.

Consider Customer Support: Stable customer support can be valuable during your loan term.

Consider the Loan Purpose Matched to Offer: Confirm the offer matches the funding that you require - whether that is working capital, equipment purchase, or expansion.

By considering all of the above, you will be able to properly assess funding options as a smart, sustainable business borrowing decision.