Funding6 min read
Loan costs and repayment
Assess the total burden of a loan, including timing, fees, guarantees and a weak-sales scenario.
What you will leave with
- Headline interest is not total cost
- Repayment timing matters as much as amount
- A buffer is part of the decision
Step 01
Calculate the full commitment
Read the offer and write down every cost.
- Amount actually received
- Total repayment
- Interest and fees
- Late and early-repayment terms
Step 02
Map repayment to cash flow
A profitable business can still miss payments when cash arrives at the wrong time.
- Expected payment dates
- Seasonal low periods
- Customer credit terms
- Existing fixed obligations
Step 03
Review downside terms
Understand what the lender may require if the business struggles.
- Collateral
- Personal guarantees
- Default consequences
- Dispute and restructuring process
Take the next practical step.
Use this guide as a decision aid, then record the action, owner and date that move the work forward.