Business Funding · 6 min read

How to Compare Funding Offers Without Getting Fooled

Two offers with the same monthly payment can differ by thousands over the term. Here's what to actually compare.

Funding offers are easy to compare badly. A lower periodic payment, a bigger advance, a shorter application : each can look like a win while hiding a worse deal over the full term.

This framework keeps the comparison honest: total cost, payment fit, flexibility, and what happens when things go wrong.

Compare total repayment, not the periodic payment

A weekly remittance structure might feel light week to week yet repay far more in total than a monthly structure with higher payments. The only honest comparison is the total amount repaid versus the amount received : plus any fees.

Understand the rate you're being quoted

Some short-term structures quote a 'factor rate' (e.g., 1.2) rather than an annualized rate : meaning you repay 1.2 times what you received, regardless of how fast you repay. An annualized rate behaves differently. Don't compare a factor rate to an interest rate as if they were the same thing.

Ask the five questions before signing

  • What is the total amount I will repay, including all fees?
  • What exactly happens if I repay early : is there any benefit or penalty?
  • What happens if a payment is late or missed?
  • Is there a personal guarantee or blanket lien?
  • What is the process and cost if I need an extension?

Frequently Asked Questions

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If this topic relates to a funding need you have, you can begin a funding request through Kennify's financing partner at any time.

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