
The Real Cost of Capital: Understanding Interest, Fees, and Repayment Terms
The real cost of capital goes far beyond the interest rate—it includes fees, repayment terms, and the total impact on your business’s cash flow. Factors like origination fees, SBA guarantee charges, and loan structures (e.g., monthly vs. bi-weekly or balloon payments) can significantly change what you’ll actually pay. To make smart borrowing decisions, always calculate the full cost—including interest type (simple vs. compound)—and negotiate where possible to lower fees, secure better terms, and protect your financial runway.

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