Indicative cost by structure
As a broad guide for well-presented requests: secured commercial mortgages 6–9% a year; asset finance 7–14%; unsecured cash-flow term loans 9–20%; invoice finance 8–16% all-in on funds drawn; bridging finance 0.6–1.2% per month plus arrangement fees; revenue-based and merchant advances 20–60% annualised once the factor rate is converted.
Pricing moves with security, sector, jurisdiction, tenor and the quality of your information. The same business can see a five-point spread across the market on the same request.
Factor rates are not interest rates
A merchant cash advance quoted at a factor rate of 1.25 on GBP 100,000 means you repay GBP 125,000. If it is repaid over nine months from card takings, the annualised cost is far above 25% because you are repaying capital continuously while paying the full fee.
Always convert flat fees and factor rates to an annualised cost over the expected repayment period before comparing them to an interest rate.
The fees around the rate
Arrangement fees of 1–2%, valuation and legal fees on secured deals, non-utilisation fees on committed lines, exit fees on bridging, early repayment charges, and personal guarantee insurance all sit outside the headline rate. On short-tenor facilities these fees often exceed the interest.
Ask for a total cost of credit figure over the realistic life of the facility, not the contractual maximum term.
Cheapest is not always right
The cheapest quote frequently carries the slowest process, the tightest covenants or the widest security net. Where speed protects a contract or a discount, a more expensive facility can be the better commercial decision.
We present options side by side with the total cost of credit spelled out, and charge nothing upfront — all fees are payable only once funding completes.
Frequently asked questions
What is a good interest rate for a business loan?
For a profitable, secured borrower, single digits are achievable. For unsecured lending to a young or thin-margin business, low-to-mid teens is common. Anything materially above that usually indicates a security, sector or credit issue worth addressing first.
How do I compare a monthly rate to an annual one?
Multiply by twelve for a rough figure, then add arrangement and exit fees spread over the expected term. A 1% monthly bridging rate with a 2% arrangement fee over six months is roughly 16% annualised, not 12%.
Do you charge a fee for finding funding?
There are no upfront fees. Our charges become due only once funding is in place.
Last reviewed: 2026-08-15