Funding information: Aarubi Finance Ltd is not FCA authorised. We provide Merchant Cash Advance services with YouLend and 365 Finance and may introduce eligible businesses to selected unregulated commercial finance providers. We do not provide consumer credit, regulated mortgages or personal financial advice. Eligibility and terms apply.
A headline interest rate does not tell you the complete cost of a business loan. Compare the cash you can actually use, everything you must pay, and when the payments fall due.
Our business finance cost FAQs provide quick answers alongside this checklist. This is general information, not individual financial or legal advice.
Start with usable cash
An arrangement fee may be paid separately, added to the balance or deducted from the advance. These produce different cash flows.
For illustration, if a Ā£50,000 facility has a Ā£1,500 fee deducted at the start, the business receives Ā£48,500. Ask how interest is calculated and what remains payable. These figures demonstrate the mechanism; they are not a claim about typical fees.
Check legal, valuation, broker, account and other charges where applicable. Ask whether the quoted total includes each one rather than adding a fee twice.
Compare timing as well as the total
| Figure or term | What to ask |
|---|---|
| Net proceeds | How much usable cash arrives? |
| Interest | Fixed or variable, and calculated on what balance? |
| Total payable | Which fees are included and what assumptions are used? |
| Payment schedule | Monthly, weekly, daily or another arrangement? |
| Early settlement | Is there a rebate, minimum charge or exit fee? |
| Security | Which assets and guarantees are exposed? |
A total-repayment figure is useful, but it is not a complete like-for-like comparison when loan sizes, terms or payment timings differ. A variable-rate facility may only have an estimated total under stated assumptions.
Annual Percentage Rate (APR), where provided, is an annualised cost measure. Do not compare it directly with a flat rate or MCA factor. Ask what charges and timing assumptions each figure includes.
Test cash-flow affordability
Model payments alongside stock, payroll, rent, tax and existing financeānot just headline turnover. Include a quieter trading period and the effect of rate rises where relevant.
For otherwise comparable amortising loans, extending the term can lower regular payments while increasing total interest. Actual fees and terms still matter.
Sales-linked collections under an MCA are different, but flexibility alone does not establish suitability. Use our cash-advance cost guide to compare the deduction and fixed fee separately.
Check the risk outside the price
An unsecured loan can still involve a personal guarantee. There is no universal loan-size threshold below which guarantees or other personal exposure can be ignored.
The British Business Bank explains secured and unsecured lending. Read the security documents and obtain independent legal advice before a guarantee or property charge. Our guarantee FAQs explain the main distinctions.
Before accepting an offer
- Obtain the full agreement and payment schedule.
- Confirm all deductions, separate charges and broker remuneration.
- Request an early-settlement illustration if that is part of your plan.
- Check variable-rate, default and financial-covenant provisions.
- Compare net proceeds and payment dates across proposals.
- Ask about business, director and guarantor credit searches.
- Keep sufficient cash for the business's other obligations.
Is the smallest monthly payment the best deal?
Not necessarily. A longer commitment can cost more overall and may outlast the useful life of what you are funding.
Can fees be negotiated?
You can ask, but a provider need not change its terms. Obtain any agreed amendment in writing before accepting.
Does an enquiry affect my personal credit file?
It depends on the checks performed. Ask what happens at the quotation and application stages rather than assuming every enquiry is a soft search.
Start a business funding enquiry if you want AARUBI to explain its service and referral process. The provider decides whether to offer funding; approval and savings are not guaranteed.
Reviewed on 30 September 2026.
