Compare business loan rates
At Fleximize, we believe business loans should be priced fairly and transparently. As the majority of SME lending in the UK is unregulated, commercial finance providers aren't obliged to disclose an annual interest rate or comparable rate of funding. With lenders presenting business loan rates in different ways, SMEs can find it difficult to compare quotes. As a result, many businesses are paying more than they think for their finance.
Using our rate comparison tool, SMEs can compare business loans that are based on different rates, and discover the true cost of their quotes.
Add Your Quote Details
Enter your loan terms below to compare costs based on interest rate, yield and factor rate.
See How Your Quote Translates
The table below shows how your quote would appear as other commonly used rate types.
Definitions of business loan rates
We’ve provided the following key definitions, which we hope will give you a better understanding of your funding options, and allow you to make an informed decision.
- Annual interest rate
- The annual rate that is charged on a loan. Expressed as a percentage, it represents the actual yearly cost of funding over the term of the loan. Annual interest is calculated by multiplying the monthly rate charged on the loan by the number of payment periods in a year, i.e. Annual interest rate = monthly rate x 12.
Yield denotes the total interest paid in a year as a percentage of the loan amount. It can be calculated by dividing the total amount of interest paid in one year by the amount funded. For example, if £2,500 interest was paid on £10,000 worth of funding, the yield on that loan would be 25%.
- Factor rate
- A factor rate is another way of representing the cost of a loan, and is commonly associated with merchant cash advances, which offer funds to businesses in exchange for a portion of their daily credit card income. Instead of being expressed as a percentage, a factor rate is written as a decimal, typically ranging from 1.1 to 1.5. To find out the total amount repayable, businesses have to multiply the advance amount by the factor rate. For example, if a business borrows £10,000 at a factor rate of 1.5, the total amount repayable will be £15,000.
Why did we create this tool?
We believe it’s important that businesses know exactly how much they’ll be paying before committing to a loan. With lenders presenting their business loan rates in different ways, it creates confusion around the cost of business finance,making it hard for businesses to compare business loan quotes from competing lenders. This rate comparison tool is designed to offer some much-needed clarity on the price of SME finance, and ensure that business owners make the best funding decision for their company.
How does the tool work?
Our rate comparison tool is built on an algorithm that automatically converts a business loan quote into a range of other rates. This can help business owners compare a number of business loan quotes that are based on different rates.
- Please note that our rate comparison tool only provides an estimate of the cost of a loan, and doesn’t take the specific lending criteria of various lenders into account.
- The results are based solely on the information that you have provided, and don’t take account of your personal circumstances.
- This tool is not a measure of your eligibility for a loan, just the estimated cost. You will still need to meet the lending criteria of your chosen lender(s).
- Monthly payment calculations are based on the assumption that payments will be the same each month (which is the case with almost all business finance providers).
- Calculations assume that all mandatory fees will be absorbed into your loan.
- We don’t intend, or expect, this to be your only source of information when it comes to making a financial decision. You should also consider taking advice from a licensed finance professional.
- This tool assumes that rates won’t change for the duration of the loan.
If our rate comparison tool hasn’t given you the information that you require, there’s plenty of other literature available on the internet. While Investopedia offers definitions of every financial term under the sun, the articles on Fleximize’s Knowledge Hub also cover a range of relevant topics.