Avoid Overpaying on a Business Loan: Costs, Fees, and Common Mistakes
Avoid Overpaying on a Business Loan: Costs, Fees, and Common Mistakes If you are comparing term loans, lines of credit, and equipment financing for the first time, the advertised rate is rarely the number that lands on your balance sheet. Lenders publish a headline figure; your accountant tracks what you actually pay after fees, covenants, and the timing of draws. That gap is where most owners get surprised—and where a careful read of the term sheet pays off before you commit. I kept mixing up “interest rate” with “total cost of borrowing” early in my career. A friend asked me last month whether a 7% loan was cheaper than a 9% one with no origination fee. The answer depended on term length, prepayment penalties, and whether they needed a Korea tax refund guide–style documentation trail for cross-border revenue. Global Finance headlines lately focus on SME lending headwinds, tighter underwriting, and the same five application errors showing up again and again. The opportunity side i...