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Compare business finance costs

Compare two business finance options side by side: monthly repayments, fees, net cash received and total finance cost. Use the rate, term and fee assumptions from quotes you are considering. This is not a live quote, lender search or eligibility result.

Reducing-balance illustration
Monthly payment£2,385/mo
£75,000cash advanced before any separately paid fee£75,000debt including any financed fee£12,359interest + fee£87,359total cash paid£2,491payment at 12.0%+£8,115cash left after existing + new finance
New payment is 4.8% of average monthly turnover entered. Arithmetic context only—not an affordability threshold.
Reducing-balance illustration
Monthly payment£1,612/mo
£75,000cash advanced before any separately paid fee£75,000debt including any financed fee£22,223interest + fee£97,223total cash paid£1,726payment at 13.5%+£8,888cash left after existing + new finance
New payment is 3.2% of average monthly turnover entered. Arithmetic context only—not an affordability threshold.

Side-by-side trade-off

Payment and total cost tell different stories.

Lower monthly paymentOption B

£773/month difference.

Lower modelled finance costOption A

£9,863 difference in interest + fees.

Term difference24 months

A longer term usually reduces payment but can increase the amount of interest paid.

Funding purposeGrowth / expansion

Purpose, security and structure can change which finance route is appropriate.

What deserves attention

Do not let one attractive number make the decision.

i

The lower payment is not the lower-cost option

Option B has the lower monthly payment, while Option A has the lower modelled finance cost. The term difference is doing real work here.

Next step

Take the preferred structure into the wider funding plan.

The Business Funding Command Centre adds purpose, evidence readiness, timing and application milestones around the repayment comparison.

Open Business Funding Command Centre →About planned TFP support

How this business finance comparison calculator works

Monthly payments use an annual reducing-balance interest rate divided by 12, with equal end-of-month instalments. At 0%, the debt is divided equally across the term. For example, £60,000 over 60 months at 0% costs £1,000 per month before fees.

A fee paid upfront is a separate cash cost. A financed fee increases the debt and attracts interest. A deducted fee reduces the cash received without reducing the debt. Compare the cash advanced as well as the monthly payment; equal headline amounts can deliver different usable funding.

Total finance cost is interest plus the fee. The cash-flow illustration subtracts existing debt and the new payment from your entered cash available; it is not a lender affordability assessment. Flat rates, factor rates, weekly collections, balloon payments and interest-only periods require a different calculation. No annual percentage rate or eligibility is inferred.

Choose the calculation that matches the need

For vans or machinery, use the asset finance calculator and compare business loans with asset finance. For customers paying slowly, test the invoice finance advance and fees. For premises, use the commercial mortgage calculator.

Published by The Finance Place. Methodology updated 27 September 2026. No independent professional review is claimed. See editorial standards and the British Business Bank's working-capital guide.

This comparator is for general information and simple cash-flow planning. It assumes reducing-balance monthly repayments and applies the selected fee treatment. Real business finance may use flat rates, factor rates, daily or weekly payments, balloon/residual amounts, interest-only periods, security, personal guarantees, covenants and other charges. Turnover and the cash figure you enter are not lender affordability tests. Nothing shown is a quote, offer of credit or recommendation.