Getting funded
How to Compare Business Loan Offers From Multiple Lenders
The biggest headline amount or the fastest funding is not automatically the best offer. This guide shows the six things to line up on every offer, a side-by-side worksheet, the questions to ask and the red flags that should stop you signing.
The Short Answer
To compare business loan offers fairly, line them up on the same six things: the total amount you will repay, the amount that actually reaches your account, the term, how and how often payments or remittances are collected, what happens if you pay early, and whether more funding is available later. The single most useful number is the total amount repaid, set against the amount received and the time you have it. The biggest headline amount or the fastest funding is not automatically the best offer. Then weigh the winner against what waiting would cost your business.
At a Glance
| Most useful single number | Total amount repaid |
|---|---|
| Also line up | Amount received, term, payment structure and frequency, early payoff terms, renewal options |
| Common trap | Choosing the largest headline amount or the lowest payment without checking the total repaid |
| Red flags | No total repaid stated, pressure to sign today, upfront fees before approval, encouragement to stack |
| Built for | Established businesses: most RAN Funding clients have 1+ year in business and $20,000+ in monthly revenue |
| Who we are | RAN Funding is a business financing company. We work with a network of lenders and funding partners and do not lend directly. |
The Six Things to Line Up on Every Offer
- Total amount repaid. Everything you will pay back over the life of the funding. The most useful number for comparing offers of different shapes.
- Amount received. What actually lands in your business bank account after any costs taken out at funding. Two offers for the same headline amount can deliver different net amounts.
- Term or expected timeline. How long you have the money. A lower total over a much shorter term may strain cash flow more than a slightly higher total over a longer one.
- Payment structure and frequency. Fixed or tied to revenue; daily, weekly or monthly. Match it to how your revenue actually comes in.
- Early payoff terms. Whether paying early reduces what you owe. Terms differ widely.
- What comes next. Whether additional funding or a renewal is available once a portion is repaid. See how soon you can borrow again.
A Side-by-Side Worksheet
| Line it up | Offer A | Offer B | Offer C |
|---|---|---|---|
| Total amount repaid | |||
| Amount received in your account | |||
| Term or expected timeline | |||
| Payment structure (fixed or revenue-linked) | |||
| Payment frequency | |||
| Early payoff terms | |||
| Renewal or additional funding | |||
| Time to funding |
Fill it in from each offer document. If any row is blank because the provider will not tell you, that is your answer about that provider. For calculations, use the business funding calculators.
Comparing Offers of Different Shapes
Offers are hardest to compare when they are different products: a term loan priced as an interest rate over three years, a working capital loan over months, a merchant cash advance priced with a factor rate. Converting everything to the total amount repaid against the amount received and the time you have it puts them on the same footing. If you want the annualized view, see factor rate vs APR. If the offers are for different products altogether, step back and check the product fits the need first: business loan or working capital funding, term loan vs line of credit.
Questions to Ask Before You Sign
- What is the total amount I will repay?
- How much will reach my account?
- How long is the term, and how are payments collected?
- What happens if I pay it off early?
- What happens if I have a slow month?
- Can I add funding later, and when?
- Who is my contact after funding?
A good provider answers all seven without hesitation. See also how to compare business loan companies for choosing who to work with in the first place.
Red Flags That Should Stop You Signing
- The total amount repaid is not stated, or is stated differently on the call and in writing
- Pressure to sign today or lose the offer
- A fee requested before approval
- An offer far above what your deposits support
- Encouragement to take a second funding on top of an existing one
- No named person to call after funding
Do You Need to Apply to Many Lenders to Compare?
Not necessarily, and applying to many at once has a cost: duplicate questions, duplicate verifications and a file that moves slower everywhere. The alternative is one application through a business financing company that works with a network of lenders and funding partners, with one specialist who brings the options back and lays them out side by side. Either way, the comparison method above is the same.
The Last Comparison: Against Waiting
Once you have the best offer, compare it with doing nothing. What does the money earn for the business, and what would waiting cost: a missed order, an idle crew, a lost season? If the funding produces more than it costs, it is worth taking. If nothing is lost by waiting, slower, cheaper financing may be the better choice. See the best way to fund your business without a bank.
Who Qualifies
Most RAN Funding clients have 1+ year in business under the current ownership, $20,000+ in monthly revenue deposited into a business bank account, and consistent deposits over the last few months. See the full requirements.
How to Apply
- Apply online. The first step takes about a minute.
- Specialist review. Your dedicated specialist reads your last 3 months of business bank statements and prepares the file once.
- Compare offers. You see the options laid out by total amount repaid, amount received and term, with no obligation.
- Get funded. Sign the one you choose and receive funds in as little as 24–48 hours.
Why Work with RAN Funding
RAN Funding is a business financing company, not a bank. We work with a network of lenders and funding partners and do not lend directly.
- One application for our lender network and one dedicated specialist.
- Offers laid out side by side, on the same terms, before you sign anything.
- Proven. 10,000+ businesses funded and $500M+ secured for clients, with a 4.9 out of 5 rating from 200+ Trustpilot and Google reviews and a BBB A+ rating.
- Nationwide. We fund established businesses across the United States.
Common Questions
How do I compare business loan offers?
Line up the total amount repaid, the amount received, the term, the payment structure and frequency, early payoff terms and renewal options. The total amount repaid against the amount received is the most useful single comparison.
What is the most important number in a business loan offer?
The total amount you will repay, set against what reaches your account and how long you have the money.
Is the lowest payment the best offer?
Not necessarily. A lower payment over a longer term can mean a higher total repaid. Compare totals first, then check the payment fits your cash flow.
How do I compare a factor rate offer with an interest rate offer?
Convert both to the total amount repaid against the amount received and the term. For an annualized view, see factor rate vs APR.
Should I apply to many lenders at once?
It is usually slower. One prepared application through a business financing company with a lender network returns several options without duplicate questions.
Is RAN Funding a direct lender?
No. RAN Funding is a business financing company that works with a network of lenders and funding partners. You complete one application and work with one dedicated specialist.
Sources
- Small business lending data collection rule Consumer Financial Protection Bureau
- Merchant cash advance disclosure laws by state RAN Funding
See What Your Business Qualifies For
One application for our lender network, one dedicated specialist. $20,000–$500,000+, funded in as little as 24–48 hours.
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