Products
Business financing products and what they cost
One page per product, each showing how it is priced, an approximate 2026 effective APR range, what moves a borrower within that range and when the product is a sensible choice. Ranges are wide on purpose, because real pricing is.
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.
Equipment financing
Equipment financing pays for a specific machine, vehicle or system, and the asset itself secures the deal. That collateral is why pricing sits near the cheaper end of the small business market, but the spread between the best and worst offers is very wide.
About 7 to 30 percent effective APR
See the cost breakdownBusiness line of credit
A line of credit is priced on what you draw, not on what you are approved for, which makes it look cheap on the offer sheet and expensive in practice once fees and utilisation are included.
About 9 to 25 percent at traditional lenders, 15 to 80 percent online
See the cost breakdownBank term loans
A conventional bank term loan is the cheapest widely available business debt outside government guaranteed programs. The price of that is time, paperwork and underwriting standards many small businesses cannot meet.
About 6 to 11 percent effective APR
See the cost breakdownOnline term loans
Online term loans sit between bank debt and cash advance products. Approval takes days rather than weeks, underwriting leans on bank transaction data, and pricing reflects both.
About 8 to 30 percent effective APR
See the cost breakdownSBA 504 loans
SBA 504 finances owner occupied real estate and long life equipment through two loans at once: a bank first mortgage and a fixed rate debenture from a certified development company, with the borrower contributing equity.
Blended cost of about 7 to 8 percent
See the cost breakdownInvoice financing
Invoice financing advances cash against unpaid receivables. The fee looks small because it is quoted for a thirty day period, but the effective APR depends entirely on how quickly your customers actually pay.
About 15 to 65 percent effective APR
See the cost breakdownRevenue based financing
Revenue based financing gives you a lump sum repaid as a fixed percentage of monthly revenue until a set multiple of the advance has been paid. There is no interest rate and no maturity date, which makes the cost easy to understate.
Repay about 1.3 to 1.5 times the advance
See the cost breakdownStartup financing options
Businesses under two years old face the widest price spread in the market. The same owner can be quoted single digit rates on a secured asset and triple digit annualised costs on an advance in the same week.
From single digits on secured deals to well over 100 percent on advances
See the cost breakdown
How to use these pages
Every figure here is an approximate 2026 market range, not a quote. Individual offers vary with the borrower, the lender and the week. Use the range to sanity check something in front of you, then run your own numbers in the calculators where one applies.
We always translate fees, factor rates and revenue shares into an effective annual cost, because that is the only figure that lets you compare two products fairly.
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.