WithFunded › Academy › Choose the right financing
How to read a financing offer: eight things to check before you sign
The amount and the rate are on the first page. What decides whether an offer is good for you is usually further down. Check these eight things on every offer, in this order.
WithFunded Academy · Lesson 3 of 16 · 3 min read · Updated November 2026
Key takeaways
- Total payback in dollars is the one figure every offer can be compared on.
- Fees taken out of your funding raise the real cost of the money you actually receive.
- Know what you are pledging: a lien on business assets and a personal guarantee are both common.
- Ask what happens in a slow month before you have one.
The eight checks
1. Total payback
Add up every payment you will make. This is the cleanest way to compare a loan, a line of credit draw, and a factor-rate advance side by side.
2. APR or estimated APR
The annual rate puts offers of different lengths on the same footing. If an offer shows only a factor rate, convert it with the factor rate to APR converter.
3. Payment amount and frequency
Monthly, weekly, or every business day? A $4,000 monthly payment and a $190 payment each business day add up to about the same, but they feel very different in a week when a customer pays late.
4. Fees
Look for origination, underwriting, draw, and maintenance fees. Ask whether they are deducted from your funding. If you are approved for $50,000 and a 3% fee comes off the top, you receive $48,500 and still repay on $50,000.
5. Prepayment terms
On an interest-bearing loan, paying early usually saves interest, though some lenders charge a prepayment fee. On a factor-rate product the payback is fixed, so paying early may save nothing unless the agreement includes a discount.
6. Collateral and liens
Many lenders file a UCC-1 financing statement, a public notice of their claim on business assets. A blanket lien covers all of them. It can limit your ability to get other financing until it is released.
7. Personal guarantee
A personal guarantee makes you personally responsible if the business cannot pay. It is standard on much small-business financing, including SBA loans. Know whether you are signing one and what it covers.
8. What happens in a slow month
Ask how a missed or short payment is handled, what the late fees are, and whether payments tied to your sales can be adjusted when sales fall. Read the default section, not just the pricing section.
A side-by-side worksheet
Fill this in for each offer. Blank cells are questions to send back to the lender.
| Check | Offer A | Offer B |
|---|---|---|
| Amount you actually receive, after fees | ||
| Total payback | ||
| APR or estimated APR | ||
| Payment amount and how often | ||
| Months to repay | ||
| Savings if you pay early | ||
| Lien on business assets? | ||
| Personal guarantee? |
The cheapest offer is not always the best one. The best one is the lowest total cost with a payment your cash flow can carry in an ordinary month, not only a good one. WithFunded guidance.
This lesson is general education, not legal advice. For a large or complex agreement, have an attorney or accountant review it.
Common questions
- What is a UCC lien?
- A UCC-1 financing statement is a public filing that records a lender's security interest in a business's assets. A blanket lien covers all business assets. It is released when the financing is paid off, and it can affect your ability to borrow elsewhere while it is in place.
- What is a personal guarantee on a business loan?
- It is your promise to repay the debt personally if the business cannot. It is common on small-business financing and standard on SBA loans for owners with significant ownership.
- Should I take the largest amount I am approved for?
- Only if the job needs it. A larger amount means a larger payment and more total cost. Size the request to the need and to what your cash flow can carry.
See what your business qualifies for
Answer a few questions and get matched to your best-fit option. Zero upfront fees. Checking won't impact your credit.
Get matched → or open the payment calculatorMore in this track
Related funding guides
What our clients say
Real reviews from business owners funded through Big Think Capital.
Excellent
Based on 3,304 reviews on Trustpilot
Landon and Austin were greatLandon and Austin were great. Knowledgable and explained everything in a way that made it all really easy to understand. I avoid these call like the plague but these two were a joy to work with.
Highly recommendedHighly recommended! I worked with Corey, and he was awesome. He found an option after I received multiple rejections that no other company had presented to me. It was within my budget and my timeline. I'm so thankful!
BTC has become my go to for working…BTC has become my go to for working capital. Recently, my company was in a bind and needed funds. The BTC team, headed by Drew, took a problem solving approach and helped to overcome an initial denial, resulting in a better facility than the one I was turned down for. Thanks BTC! Thanks Drew!
Showing 5-star reviews of Big Think Capital, our funding partner. TrustScore 4.9 out of 5 on Trustpilot as of November 10, 2026. Read all reviews
Rate inputs are as of November 2026: a representative 8%–30% APR band for non-bank term financing and a 7.00% prime rate. Worked examples are WithFunded calculations.
Educational content. WithFunded Academy lessons are general information for small-business owners. They are not financial, legal, or tax advice, and they are not an offer or a commitment to lend. Figures are representative examples and WithFunded calculations, not quotes. WithFunded and Big Think Capital are a financing marketplace; we are not the direct lender and do not guarantee funding, approval, rates, or terms. Actual rates, fees, payments, and terms are set by the funding lender and depend on your business, credit, and the product. Where required by state law, the lender provides cost-of-financing disclosures before any agreement is signed.