About

An independent view of what financing costs

Cost of Financing exists because the small business lending market is priced in units that are hard to compare. Factor rates, holdbacks, advance rates and guarantee fees all describe cost, and none of them are directly comparable to each other.

Educational estimates only. This page is general information, not financial advice. Cost of Financing does not offer, broker or arrange loans, and we accept no lender sponsorships, referral fees or lead payments.

What we do

We publish free calculators and plain English guides that convert financing offers into comparable numbers, chiefly an effective annual percentage rate and a total cost of capital. We show our working, we publish ranges rather than false precision, and we say clearly when a product is expensive.

The site exists to make the cost of an offer easier to understand before a business commits to it. A small monthly factoring charge and a merchant cash advance factor rate can look reassuring on their own. Neither tells you how much cash reaches your business, how quickly it leaves again or what the fees add over a year. Those are the questions our estimates are designed to answer.

Who it is for

We write for small business owners and founders comparing ways to fund invoices, equipment or working capital. You do not need lending experience to use the calculators. The guides explain the terms in plain English, while the line items make it easier to spot costs that an offer sheet might leave out. We cannot judge your creditworthiness or know which terms a lender will offer you.

How we differ from lender calculators and loan marketplaces

A lender calculator may illustrate payments for that lender's own product. A loan marketplace may ask for business details before showing offers. We do neither. Our calculators work without an application or contact details, and nothing you enter is sent to a lender. We compare costs using stated assumptions, rather than matching you with a financing provider or suggesting that an estimate is a quote.

Our methodology explains how fees and repayment schedules become annual cost estimates. Our editorial standards describe the sources we use, our review schedule and how readers can request a correction. These policies let you assess the work without relying on an invented expert identity or an unexplained score.

What we do not do

We do not offer, broker or arrange loans of any kind.
We do not accept lender sponsorships or paid placement.
We do not collect, sell or share leads. There is no application form on this site.
We do not run affiliate links to financing products.
We do not give financial advice tailored to your circumstances.

How we are funded

Display advertising, served through Google AdSense, is our only revenue. Advertisements are labelled. Advertisers have no input into our figures, our rankings or our editorial judgements, and we do not know in advance which advertisers will appear on a page.

Editorial standards

Every calculator carries a methodology section explaining the maths.
Every guide shows a last reviewed date.
We correct errors promptly and note material corrections on the page.
We widen ranges when sources disagree rather than picking the friendliest number.
We do not name a best lender, because pricing depends on your file, not on our opinion.

Get in touch

Corrections, data contributions and press enquiries are all welcome through our contact page.