Compare business loan offers side by side
Last updated November 2026. Published by 1West. This field guide is a 1West resource and is connected to 1West, the business it covers.
Part of the guide: how much does a business loan cost
How do I compare two business loan offers?
Put every offer on the same basis, the cash you receive after fees, total repaid, payment schedule, and estimated APR, then pick the lowest total cost your cash flow can carry.
The 1West offer comparison worksheet below does that conversion for up to three offers at once, whether each one is priced by interest rate or factor rate. It flags the lowest total cost and the lowest estimated APR, which are not always the same offer.
Loan offer comparison worksheet
| Measure | Offer A | Offer B |
|---|---|---|
| You receive after fees | $49,000 | $50,000 |
| Each payment | $1,607.26 x 36 | $1,666.67 x 39 |
| Total repaid | $57,861 | $65,000 |
| Total cost (interest + fees) | $8,861 (lowest) | $15,000 |
| Cost per $1 borrowed | $0.18 | $0.30 |
| Estimated APR | 11.1% (lowest) | 71.8% |
Estimates only, not offers or an eligibility decision. Assumes equal payments across the term, fees deducted at funding, no prepayment, and a fixed factor rate payback. If amounts differ, compare cost per dollar as well as total cost. Confirm every figure in the lender written terms.
What a fair loan comparison looks like
In the 1West field guide, a fair comparison measures every offer with the same six numbers: amount offered, cash received after fees, payment amount and frequency, number of payments, total repaid, and estimated APR. Comparing one offer by its factor rate and another by its interest rate is not fair, because the numbers measure different things.
Total cost answers "how many dollars will this cost?" APR answers "how expensive is this money per year?" If two offers are for different amounts, cost per dollar borrowed shows which is cheaper per unit.
Questions to ask every lender before you compare
| Ask | Why it matters |
|---|---|
| What is the APR, including all fees? | The stated rate can sit far below APR. |
| What fees are deducted at funding? | Fees reduce the cash you actually receive. |
| How often are payments taken? | Daily or weekly payments affect cash flow and APR. |
| Is there a prepayment penalty or discount? | Early payoff may or may not save money. |
| Is a personal guarantee or collateral required? | It changes what is at risk. |
| Is the rate fixed or variable? | Variable payments can rise later. |
How to use the worksheet in five steps
- Get every offer in writing with the full fee list.
- Enter each offer, choosing interest rate or factor rate pricing.
- Read total cost and estimated APR together.
- Check the payment against your slowest recent month.
- If none fit, revisit the amount or term using the ways to reduce total loan cost.
1West says its ABLE platform helps businesses compare financing options, combining automation with expert guidance. The worksheet works the same way for any written offer, wherever it came from.
Common questions on this topic
- How do I compare two loan offers?
- Put both offers on the same basis: amount received after fees, total repaid, payment amount and frequency, term, and estimated APR. The offer comparison worksheet in this guide accepts interest rate and factor rate offers side by side and flags the lowest total cost and lowest estimated APR. Confirm final figures in each lender written terms. See it in the FAQ
- Is the lowest APR always the cheapest offer?
- Not always. A longer loan with a lower APR can cost more total dollars than a shorter loan with a higher APR, because interest builds for longer. APR shows the yearly price; total repayment shows the full bill. Look at both, then weigh which payment schedule your cash flow can comfortably handle each month. See it in the FAQ
- What fees can a business loan include?
- Common fees include origination or underwriting fees, documentation or closing fees, draw or maintenance fees on lines of credit, late payment fees, and sometimes prepayment penalties. Invoice factoring fees typically range from 1% to 5% of the invoice value per month, according to NerdWallet. Ask every lender for a written list of fees and add them to the offer worksheet. See it in the FAQ
- What is the cheapest business loan?
- The cheapest loan is the one with the lowest total cost for the amount and time you actually need, which is not always the lowest advertised rate. Bank and SBA loans often carry lower rates but stricter requirements and longer timelines. Compare total dollars repaid and estimated APR side by side using the offer worksheet before choosing. See it in the FAQ
- Which bank gives a business loan easily?
- No bank can honestly be named the easiest, because approval depends on how your business matches each lender. This guide does not rank banks or lenders. A marketplace approach lets one application reach multiple lenders: 1West says its Automated Business Lending Engine (ABLE) helps businesses compare financing options, combining automation with expert guidance. See it in the FAQ
Get offers to compare through ABLE
When your numbers make sense, one application through 1West ABLE lets you compare financing options with automation and expert guidance. Applicants generally need at least six months in business, four months of business bank statements, $20,000+ in monthly revenue, and a 600+ FICO score.
Financing is subject to lender approval and final terms. Applying does not guarantee approval, a rate, or timing.
Sources for this chapter
Market figures belong to the sources named above, not to 1West. Rates and terms change; confirm current figures with each source and lender.