When choosing the right business loan, we should always pay attention to the full costs – not only those related to interest. Sometimes it turns out that they are so high that even a low-interest business loan is more expensive than the one with higher interest rates.
Banks and non-banking companies earn money by borrowing money. They are lent on certain terms and for a specified fee, which is made up of interest-bearing interest rates, a business loan commission, as well as additional fees, for example preparatory fees. Large discrepancies between various business loans result, therefore, in the differentiation of the above costs. When we want to take out a business loan safely, always check carefully what expenses we will have to reckon with.
However, apart from these costs, there may also be additional, hidden ones, which the lender does not mention at all. What should we watch out for?
What hidden costs can we find in business loans?
Each business loan company or bank has its own rules on which they offer cash business loans, as well as other types of products. Usually when we watch ads for such business loans , we can only see the selected fees – it is mainly an interest rate which, if it is low, may tempt you to take a business loan. Of course, only when we delve into the contract and the tables of fees, we can see that the interest rate is not the only expense that we have to take into account.
In addition to the aforementioned fees, including commission and preparation fee, there may also be such costs as: business loan insurance fee, verification fee – used in the case of business loans on-line. Also, if we do not repay the business loan on time, the lender may start charging fees for the call for payment of installments, including telephone and mail-based reminders, and even for emails and text messages, as well as for the collectors’ visit due to lack of repayment installments.
However, these are not all additional costs that may arise in connection with a business loan. We can expose ourselves to them mainly when we use the offers of unreliable business loan companies. Then the lender may require us to pay a large fee for processing the application, for example, as a high-paying SMS. Moreover, the problem is the business loan mortgages that require notary fees incurred – such offers non-banking should be approached with extreme caution.
Choose a secure business loan with no hidden costs
If you want to take out a business loan safely and not expose yourself to any hidden costs, in such a situation always check the contractual provisions and additional documents, for example, regulations or tables of fees. Use only the services of business loan companies and banks with positive reviews.
When you are interested in a quick and convenient installment business loan, we have prepared an attractive offer for our clients at Bank – a business loan of up to PLN 10,000 for a period of 24 months. It is an excellent choice for anyone who needs an additional financial injection. You will get a business loan from us on clear terms – you can check the costs in our calculator on the home page now. Welcome!