What each financing product typically costs, how lenders structure their charges, and how to compare two offers that look alike but aren't. Use these ranges to plan a realistic budget before you apply.
Credit, revenue, time in business, collateral and loan size move your pricing more than anything else. Two offers for the same amount can differ by 15 points.
Fees can rival points
An origination fee is charged once, but a 3% fee on a short-term loan adds far more to your cost than 3% of a five-year loan.
APR beats factor rate
Factor rates hide the time dimension. Ask every lender for the APR and the total dollars you will repay before comparing.
Typical Rates & Fees by Product
Every product is priced differently. Scan the row, then open the product for the full fee breakdown.
Typical interest rate ranges, amounts, terms, fees and pricing drivers for each business financing product
Arrangement 1% – 3%, legal/diligence, exit fee, possible warrants
Leverage, senior debt position, deal size
Ranges are typical market figures for U.S. small business financing, not quotes. Rates move with the prime rate and with your credit, revenue and time in business.
The Full Breakdown, Product by Product
Typical rate ranges, what drives the pricing, every common fee, and the one cost detail borrowers most often miss.
Business Lines of Credit
8% – 30% APR
Prime-based bank lines price near the low end. Online and fintech lines price higher for faster decisions and lighter documentation.
Typical amount
$25K – $10M
Typical term
Revolving, reviewed annually
Fee structure
Origination or setup0% – 3% of the approved limit
Annual or maintenance$0 – $500 a year, or $0 – $100 a month
Unused-line fee0.25% – 1% of the undrawn balance
Draw or transaction fee$0 – $25 per draw, or a small percentage
Late feeTypically 3% – 5% of the missed payment
A line you rarely draw can still cost money. Annual, maintenance and unused-line fees add up, so ask what the all-in cost is at 50% utilization, not just the headline rate.
Fixed-rate bank and SBA-style terms sit at the low end. Online lenders price higher for speed, smaller amounts and lighter paperwork.
Typical amount
$25K – $15M
Typical term
6 months – 5 years
Fee structure
Origination1% – 5% of the loan amount, often deducted at funding
Processing or documentation$0 – $1,000
Prepayment penaltyCommon on fixed-rate loans; often a declining percentage
Late feeTypically 5% of the missed payment
An origination fee taken out of the loan means you receive less than you borrow but repay the full amount. Compare the net proceeds and the total of payments, not just the rate.
Most 7(a) loans float at prime plus a lender spread. 504 projects are typically fixed-rate for the long-term portion. Both are government-guaranteed, which keeps pricing lower than most alternatives.
Typical amount
$50K – $5M
Typical term
Up to 25 years
Fee structure
SBA guaranty fee0% – 3.5% of the guaranteed portion; waived on many loans of $1M or less
Lender packaging feeUp to about 1% on smaller loans
Closing costs$1,000 – $10,000+, including appraisal, title, environmental and legal
ServicingUsually built into the rate rather than billed separately
The guaranty fee is set by the SBA, not the lender, and real-estate closing costs can be substantial. Ask for a full closing-cost estimate in dollars before you commit.
The equipment itself is collateral, which usually prices better than unsecured funding. New equipment and stronger credit sit at the low end; used equipment and startups run higher.
Typical amount
Up to $10M
Typical term
2 – 7 years
Fee structure
Origination or documentation0% – 3%; a flat $150 – $1,000 is common
UCC filing and recordingAbout $50 – $300
InsuranceLender-required coverage, often $500 – $2,000 a year
End-of-lease option$1 buyout, 10% buyout, or fair market value — the choice changes total cost
A $1 buyout lease and a fair-market-value lease can differ by thousands at the end. Compare the total of payments plus the buyout, not just the monthly figure.
Priced on revenue and cash flow rather than assets, so service businesses with no collateral can qualify — at a higher rate than secured lending.
Typical amount
$25K – $5M
Typical term
6 – 24 months
Fee structure
Origination1% – 5% of the amount funded
Documentation or processing$0 – $750
Late feeTypically 5% of the missed payment
Unsecured pricing reflects risk. Before accepting a higher rate, check whether a secured option — equipment or invoices — would cost meaningfully less.
Quoted as a factor rate, not an APR. Repaid as a share of daily or weekly sales. The annualized equivalent commonly lands between roughly 30% and 100%+, depending on how fast sales repay it.
Typical amount
$5K – $1M
Typical term
Share of revenue, typically 6 – 18 months
Fee structure
Origination1% – 5% of the funded amount
Administration or ACH$0 – $75 a month
Early payoffUsually no discount — the full factor amount is owed regardless of speed
Late or missed holdbackFees plus possible default-rate interest
A factor rate does not look like interest, but a 1.30 factor means $130,000 owed on $100,000 — and the annualized cost is far above a term loan. Compare total repayment dollar for dollar.
You sell invoices at a discount and receive an advance of roughly 70% – 90% up front. Pricing follows your customers' credit, not only yours. A 2% monthly discount is roughly 24% a year.
Typical amount
$25K – $5M
Typical term
Per invoice, 30 – 90 days
Fee structure
Discount fee1% – 5% of the invoice, charged per 30 days outstanding
Setup or onboarding$0 – 2% of the facility, or a flat fee
Minimum volumeMonthly minimums are common; shortfalls may be billed
Termination feeOften charged if you exit mid-contract
Credit checks$0 – $100 per customer account
Your customers' payment habits set the final cost: slower payment means more 30-day periods and more discount. Model the fee at 60 and 90 days, not only 30.
You keep ownership of the invoices and borrow against them, so pricing is interest plus an ongoing service charge rather than a discount on the invoice.
Typical amount
$25K – $5M
Typical term
Revolving against receivables
Fee structure
Service or administration0.5% – 2% of receivables per month
Origination1% – 3% of the facility
Collateral monitoring or field exam$0 – $1,500, sometimes recurring
Unused availability feeSometimes charged on undrawn capacity
Adding a monthly service fee to interest can push the effective cost well above the quoted rate. Ask for the all-in cost on your expected average borrowing.
Inventory lending is priced on stock as collateral with advance rates of roughly 50% – 80%. Purchase-order financing is priced per order because the lender pays your suppliers directly.
Typical amount
$25K – $5M
Typical term
Tied to the stock or order cycle
Fee structure
Origination1% – 3% of the facility
Collateral monitoring or field exam$0 – $1,500, sometimes recurring
PO transaction fee1.5% – 5% of the order value
Supplier payment or wire fee$25 – $100 per payment
Advance rates matter as much as rates: if the lender advances 60% of inventory value, you still fund the other 40%. Plan the cash gap, not just the interest.
Junior debt ranks behind senior lenders, so it prices higher. Deals commonly land around 12% – 18%, and some include warrants or an equity kicker.
Typical amount
$1M – $15M
Typical term
3 – 7 years, often with a balloon
Fee structure
Arrangement fee1% – 3% of the facility
Legal and due diligence$10,000 – $50,000+, usually paid by the borrower
Exit or prepayment feeCommon; often a percentage in the first years
Warrants or equity kickerOccasionally included, which raises the true cost
Arrangement fees, legal costs and any warrants can add materially to the effective cost. Ask for the all-in cost including fees and any equity component before comparing it with equity or senior debt.
The rate matters, but the structure and the term decide what you actually pay. These three examples borrow the same amount.
Bank-style term loan
12% APR, 24 months, $100,000
Monthly
$4,707
Total repaid
$112,975
Cost of credit
$12,975
Online term loan
24% APR, 18 months, $100,000
Monthly
$6,674
Total repaid
$120,124
Cost of credit
$20,124
Short-term / factor-rate
1.30 factor, repaid over about 9 months, $100,000
Monthly
≈ $14,445
Total repaid
$130,000
Cost of credit
$30,000
Illustrative only, before fees. The first two assume equal monthly payments; the third assumes repayment in roughly nine months. A factor-rate advance repaid faster costs the same in dollars but annualizes higher.
Five Questions to Ask Before You Sign
Any lender quoting a rate should be able to answer these in writing.
What is the APR, and what is the total dollar cost of credit over the full term?
Which fees are deducted from my proceeds, and which are billed later?
Does paying off early reduce what I owe, or is the full interest still charged?
Is the rate fixed or variable — and if variable, what index does it follow?
What happens if I miss a payment or my revenue drops below the expected level?
What Each Fee Actually Means
Lenders describe the same charges in different words. Ask which of these appear on your offer, and in what dollar amount.
APR
The annualized cost of credit including interest and most fees, expressed as a yearly percentage. It is the most reliable single number for comparing offers of different lengths.
Factor rate
A multiplier applied to the amount funded: 1.30 means you repay $130,000 on $100,000. It is not an annual rate — the cost looks small but the annualized equivalent is usually high.
Origination fee
A lender charge for underwriting and issuing the loan, usually 0% – 5% of the amount. It is often deducted from proceeds, so you receive less than you borrow.
SBA guaranty fee
A fee the SBA charges lenders for its guarantee and passes to the borrower. It is set by the SBA, can run up to 3.5%, and is waived on many loans of $1M or less.
Closing costs
Third-party costs to close a loan: appraisal, title, environmental review, filing and legal. On real-estate-backed SBA loans these can reach five figures.
Draw and unused-line fees
Charges on a line of credit for taking money out, and a small percentage on the part of the limit you leave untouched. Both raise the cost of a line you use lightly.
Servicing / maintenance fee
An ongoing monthly or annual charge for administering the loan or line, separate from interest. Small per month, but it matters on small balances.
Collateral monitoring / field exam
A charge for auditing inventory or receivables that secure an asset-based facility. Can be a one-time onboarding cost or a recurring expense.
Prepayment penalty
A fee for paying off early, used to protect the lender's expected yield. Often a declining percentage in the first one to three years — ask specifically.
Minimum volume / termination fee
Common in factoring: you commit to a monthly volume, and falling short or exiting the contract early triggers a charge.
Broker or packaging fee
A fee for preparing or placing the loan, sometimes paid to an advisor and sometimes financed into the loan. Ask who is being paid and how much.
Important Disclosures
Ranges on this page are typical market figures for U.S. small business financing, shown for planning only. They are not quotes or offers, and they exclude fees unless stated. Each lender sets its own rates, fees, collateral requirements and credit standards — ASBCLF is a marketplace, not a lender, and does not make credit decisions. Your actual cost depends on your credit, revenue, time in business, industry, loan size and term. Always compare the lender's written disclosures, including the APR and the total dollar cost of credit, before signing.
Compare real offers, not just rates
Submit one application and ASBCLF will match you with lenders suited to your business — then you can compare the full cost of each offer side by side.