Start with the amount you actually receive
The funded amount on an offer is not always the cash that reaches your account. Origination fees, underwriting fees and other deductions can reduce it. Two offers for the same headline amount can leave you with different amounts of usable cash, so write down the net disbursement for each offer first.
If an offer also requires you to use part of the funds to clear an existing balance with the same provider, subtract that too. The question is simple: how much new cash can the business use for the purpose you applied for?
Find the total repayment and the dollar cost
Total repayment is everything you will pay back, including fees collected over time. Subtract the net amount you received and you have the dollar cost of the funding. This single number cuts through different pricing styles and is often the clearest way to compare offers with similar terms.
In states with commercial financing disclosure rules, covered offers typically show total repayment and cost in writing. Anywhere else, ask for it. See our overview of disclosure laws by state.
| Item | Offer A | Offer B |
|---|---|---|
| Headline amount | $50,000 | $50,000 |
| Fees deducted | $2,500 | $0 |
| Net amount received | $47,500 | $50,000 |
| Total repayment | $62,000 | $64,000 |
| Dollar cost (repayment minus net) | $14,500 | $14,000 |
| Payment | About $2,950 each week | About $5,330 each month |
| Approximate monthly payment | About $12,700 | About $5,330 |
| Term | About 21 weeks | 12 months |
Convert every payment to a monthly amount
Daily and weekly payments feel smaller than they are. Convert each offer to an approximate monthly figure: multiply a business-day payment by about 21, or a weekly payment by about 4.3. Then compare that figure with your slowest recent month of deposits, not your average or best month.
A payment that is comfortable in peak season can be painful in a slow one. If your revenue is seasonal, read seasonal cash flow by region before choosing a payment schedule.
Account for the term
Cost depends on time. Paying $10,000 of cost over five years is very different from paying it over six months. When offers have different terms, the dollar cost alone can mislead, so also look at an annualized figure where one is provided, or compare offers with similar terms side by side.
Shorter terms usually mean higher payments and higher annualized cost but less total cost in dollars. Longer terms ease cash flow but add total cost. Our explainer on factor rate vs. interest rate shows why a short term changes the math.
Check prepayment, fees and security
Ask whether repaying early lowers what you owe, since some agreements fix the total regardless of timing. List every fee, including late, returned-payment and maintenance fees. Then read what secures the funding: specific equipment, a blanket lien on business assets, a personal guarantee, or a combination.
A cheaper offer with a broad blanket lien and a personal guarantee may carry more risk than a slightly costlier one secured only by equipment. See what a UCC lien is for the basics.
Watch for warning signs
Slow down if a provider will not show total cost in writing, pressures you to sign the same day, asks for upfront fees before an offer, or promises approval before reviewing your business. Legitimate offers can move quickly, but they do not need to hide the numbers or rush your decision.
- Terms that change between the verbal quote and the contract.
- Blank spaces in the agreement.
- No clear explanation of how payments are collected.
- Promises that sound too good, such as approval for everyone.
When you apply with 50 States Funding, you review offers with terms in writing before deciding. See How It Works.
Frequently asked questions
What is the single most important number to compare?
There is no single number, but total dollar cost paired with the monthly-equivalent payment tells you most of what you need. The first shows what the funding costs; the second shows whether your business can carry it. Then check term and prepayment.
Should I always choose the lowest-cost offer?
Not always. The lowest-cost offer might have a payment your cash flow cannot handle, or security terms you are not comfortable with. Choose the offer whose cost is reasonable for the purpose and whose payment fits your slowest month.
Is an estimated annualized rate reliable?
It is a useful comparison tool, especially for short-term products, but it is an estimate, particularly when payments depend on sales. Use it alongside the total dollar cost and the payment schedule rather than as the only number.
How many offers should I compare?
Two or three comparable offers is usually enough to see whether pricing is reasonable. Applying through one application with 50 States Funding lets funders review your request, so you can compare without filling out many separate applications.
Can I negotiate an offer?
Sometimes. You can ask about a different term, payment frequency or amount, and providing more documentation can occasionally improve terms. Ask for any changes in a revised written offer before you sign.
Compare offers with the numbers in writing
Apply once and review what funders can offer before you decide.
Updated September 14, 2026 · 50 States Funding Team