It depends on the lender, the type of finance, the term and the security behind it. Every case is priced on its own facts, and your indicative offer will quote the rate, or the effective cost, explicitly.
What moves your rate most
- Trading history. Longer, cleaner accounts mean better pricing.
- Turnover and margins. Stronger cover for the repayments means a better price.
- Security. An asset or a charge behind the facility brings the rate down. Unsecured costs more.
- Loan-to-value. Borrowing less against the same asset almost always prices better.
- Sector and lender appetite. The same case prices differently across lenders, which is why we compare them.
Rates and effective cost
- Term loans and asset finance usually quote an interest rate, fixed or variable.
- Invoice finance is usually a charge on the invoices funded, plus a service fee.
- Merchant cash advances use a factor rate rather than an interest rate. They're usually unregulated, and often cost more than a loan.
Compare the whole cost
Look at arrangement fees, the term, early repayment charges and any security alongside the headline rate. We set the offers out side by side so you can compare them properly.
Last reviewed: 8 October 2026