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Course Library · Lesson 4 of 6
Money · Guided lesson

Compare business loan terms and proceeds

About 13 minutes · 3 reading + 10 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
See this course’s project requirements

A fictional funding request with verified uses, owner contribution, cash capacity, loan-term comparison, collateral questions and a go/no-go recommendation.

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • A funding-use table and source/term verification questions.
  • A balanced or gap-flagged sources-and-uses schedule.
  • A repayment-capacity worksheet with numerator definition and downside gap.
  • A business-loan term/proceeds/cost scorecard.
  • A collateral/guarantee question map for qualified review.
  • A completed fictional small-business loan-readiness packet.

Review and revise

Use these criteria to check your work and choose what to improve.

  • All supplied records reconcile and the decision uses the named case rules.
  • Calculations show units, intermediate values and a second check.
  • Changed-input practice revises the affected result and identifies uncertainty.
  • The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
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Before you begin

The idea in everyday life

This is an original fictional practice case. No account, payment, personal record or outside participation is required. Same need $6,000: A delivers $6,000, 24×$280 payments, $0 separate fee. B delivers $6,000, 36×$200 payments and $150 separate upfront fee.

The idea

Normalize funding received, complete payments, fees and term before comparing business borrowing options.

Follow along

Compare business loan terms and proceeds — worked practice

Normalize funding received, complete payments, fees and term before comparing business borrowing options.

Use paper or a local table; label all amounts as fictional USD unless the case names another unit. Same need $6,000: A delivers $6,000, 24×$280 payments, $0 separate fee. B delivers $6,000, 36×$200 payments and $150 separate upfront fee.

Complete business-loan cash flows

Paste at A1.

AOfferBDelivered USDCPayment countDPayment USDESeparate upfront fee USD
A6000242800
B600036200150

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  1. 1. Step 1: Confirm delivered loan amounts match

    Confirm delivered loan amounts match.

    You should see: Both deliver $6,000; B fee is an extra outlay here.

    Normalize funding received, complete payments, fees and term before comparing business borrowing options.

  2. 2. Step 2: Compute complete payment totals

    Compute complete payment totals.

    You should see: A $6,720; B $7,350 including the fee.

    Keep this intermediate result so the final decision can be checked.

  3. 3. Step 3: Compute financing cost above delivered funds

    Compute financing cost above delivered funds.

    You should see: A $720; B $1,350.

    Keep this intermediate result so the final decision can be checked.

  4. 4. Step 4: Compare cost and payment capacity

    Compare cost and payment capacity.

    You should see: B lowers monthly payment $80 but costs $630 more; exact APR/security/variable terms still need disclosure review.

    Keep this intermediate result so the final decision can be checked.

Now change one thing

B’s separate fee falls to $50. Complete payments and fee total?

Your work

What to finish

A business-loan term/proceeds/cost scorecard.

Common mistake

Watch for this

Using the smallest periodic payment as proof of the cheapest financing.

How can I tell I understand it?

Compare complete business financing outflows against equal delivered proceeds on the supplied changed case while preserving the stated rule and checking the final record.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1Loan delivers $5,000, requires 20×$270 plus $100 extra fee: cost above proceeds?
2A fee is withheld from principal instead of charged separately. What must change?
3A payment is variable with an index. What should the request include?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
4
Finish this lesson

Pass the check. We’ll save the progress.

Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.

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Tools, templates, and lesson sources

Tools and templates

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Sources and further reading

Explore the references behind this lesson.

U.S. Small Business Administration — Lender Match
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

U.S. Small Business Administration — 7(a) loans
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

U.S. Small Business Administration — Microloans
Source & access notes · checked 2026-10-01

Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.

Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.

Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.

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