The revenue-based finance provider’s comparison tool will allow businesses to instantly compare business loan quotes that are based on a range of different rates.
Fleximize has introduced the tool after finding that businesses were accepting quotes based on less conventional rate types – such as yield or factor rate – believing them to be cheaper than quotes based on a monthly interest rate.
Factor rates typically range from 1.1 to 1.5 and – according to Fleximize – it can be easy for business owners to believe it’s a lower rate, but the reality is that quotes based on unconventional rates can often be more expensive than those based on a standard interest rate.
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“At Fleximize, we believe that business finance should be priced fairly and transparently,” said Peter Tuvey, co-founder and managing partner of Fleximize.
“With some lenders hiding the cost of their loans behind unconventional rates, business owners can end up paying more than they thought for their funding.”
The rate comparison tool is built on a unique algorithm which was designed by Fleximize’s finance and development teams.
The tool allows SME owners to enter the details of a business loan quote, including any mandatory fees, before instantly converting it into other rate types and displaying the total amount repayable.
Peter concluded by adding: “We hope that our rate comparison tool will educate business owners about these less conventional rates, and ensure that they get the best possible deal for their business.”