2 min read
Definition
An arrangement fee (or facility fee) is a charge levied by some lenders for arranging a loan, usually a fixed sum or a percentage of the amount borrowed, payable at the outset or added to the balance.
In plain terms
It's the cost of setting the loan up, separate from interest. A low rate with a hefty arrangement fee can be dearer than a clean higher rate.
Why it matters for your company
Always fold arrangement fees into the total cost when comparing offers. See business finance fees explained and the true cost calculator.
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