Pricing
How to read a business funding offer
Credible Lending Editorial · Updated · 4 min read
The short answer
The most useful number in any business funding offer is the total cost of capital: the full amount you'll repay minus the amount you receive. Compare that figure, along with the payment frequency and term, across offers. Rates alone can mislead, because different products express cost differently.
The terms you'll see
- Funded amount: what lands in your account after any origination fee.
- Total payback: every dollar you'll repay over the life of the financing.
- Cost of capital: total payback minus funded amount.
- Payment frequency: daily, weekly or monthly. It shapes cash flow as much as cost does.
- APR or factor rate: two different ways of expressing price.
Which number should I compare?
Start with cost of capital in dollars, then check whether the payment schedule fits your deposits. Every Credible Lending offer shows the total cost of capital before you accept, and there are no draw fees on our lines of credit.
Use our rate converter to translate a factor rate into an approximate APR before you compare two offers.