Rates and fees: your questions answered

Costs depend on your business, the lender, amount and term. Your broker will explain how the rate is calculated, your repayments, lender fees, any broker fee, ongoing charges and the scheduled total cost. We also explain any early-payout conditions.

A comparison rate combines the interest rate with most standard fees into a single figure, so two loans can be compared on a like-for-like basis. It is required for consumer credit regulated by the NCCP Act, such as a personal car loan. Business and commercial lending is generally not regulated that way, so a comparison rate may not be quoted. For commercial finance, ask instead for the scheduled repayment, all fees and the total amount payable over the term.

The common ones are an establishment or documentation fee charged at settlement, a monthly account-keeping fee, and a PPSR registration fee for recording the lender's interest in the asset. A brokerage fee may also apply, which we disclose to you in writing before anything is submitted. Some agreements include an early termination or break cost. Fees vary by lender and are typically a modest part of total cost compared with the interest, but they should still be compared.

Because they are pricing different levels of risk and using different funding. A bank with a long assessment process and full financials can price sharply; a fintech approving in hours from bank statements charges more for that speed and the lighter verification. Asset type, age, term, deposit, credit history and whether directors own property all move the number. That is the point of a panel — the same deal can land very differently, so it is worth comparing rather than accepting the first quote.

Most facilities can be paid out early, but the cost depends on the structure. Fixed-rate equipment finance often includes a break cost or an early termination fee that recovers part of the lender's expected interest, so paying out in year one rarely saves the full remaining interest. Some short-term unsecured loans have a fixed total repayable, meaning early repayment saves little or nothing. Ask for the payout figure in writing before you decide.

A factor rate expresses the total repayable as a multiple of the amount borrowed, for example 1.20 on $50,000 means $60,000 is repaid in total. It is not an annual interest rate and usually works out more expensive than the equivalent APR, so always compare the total cost.