Understanding Business Loans
Business loans provide capital for expansion, equipment, working capital, or other needs. They come with fixed or variable rates, various terms, and may include fees beyond the stated interest rate. Understanding the total cost of borrowing is essential for sound financial planning.
What Are Origination Fees?
Origination fees are upfront charges by the lender to process your loan, typically 1-5% of the loan amount. A $100,000 loan with a 2% origination fee means $2,000 in additional costs. Always factor these fees into your total cost comparison.