Start with one written brief
State the amount, use, drawdown date, desired term, repayment source and security you can offer. Give every shortlisted provider the same request.
Use primary evidence
Prefer bank statements, filed tax records, signed contracts, ageing reports and official registers. Keep the forecast assumptions separate from historical results.
Compare the agreement, not the headline
Record net cash received, total cash paid, rate basis, fees, guarantees, security, default terms, cancellation rights and early settlement.
Keep an audit trail
Save the quote, product terms, repayment schedule and the reason for the decision. Recheck any time-sensitive rate or licence immediately before signing.
Use the actual payment dates
A flat-rate advertisement normally multiplies the original principal by a monthly percentage even though principal falls with each payment. Annualising the cash flows captures that declining balance and makes the figure more comparable with a conventional bank rate.
Enter the cash actually received after deducted fees, followed by each required payment on its due date. Irregular first payments, balloon amounts and mandatory service charges can materially change the result.
Keep APR beside total cash cost
Annualised cost is useful for comparing facilities with similar risk and term, but it does not show the monthly pressure on the company. Keep the highest scheduled payment, total repayment and early-settlement amount beside the percentage.
A short facility can display a high annualised rate even when the dollar fee is manageable for a profitable transaction. The commercial question is whether the funded sale produces enough contribution margin after financing, returns, delay and tax.
Rates, limits and eligibility can change. Ask for a current written quote, repayment schedule and agreement. General information only.