How to Compare Lending Offers Without Getting Lost in the Small Print

Because the lowest interest rate isn’t always the best deal

When you’re looking to finance the purchase of a dental or pharmacy business or indeed any healthcare business, you will likely receive multiple lending offers. But how do you know which one is genuinely the best?

Hint: it’s not always the one with the lowest interest rate…..

At FTA Finance, we help healthcare professionals decode the small print and choose funding that supports long-term success, not just short-term savings.

Here’s how to compare offers like a pro, without getting lost in jargon.

1. Look beyond the interest rate

The interest rate is important but it’s only one part of the equation. You should also consider:

• Bank Arrangement fees and whether they can be added to the loan

• Early repayment charges

• Overall Loan term – and whether committed for full term or if any short-term review built in (often at year 5 at which time the loan expires and may incur fresh fees and review of interest rate)

• Covenants & Conditions attached to the loan

• Valuation costs

• Legal costs – especially if a separate Bank appointed lawyer is to be involved

• Whether the rate is fixed or variable

• The total cost of borrowing over the loan term

A lower interest rate with more stringent conditions and potential short-term review can often end up costing more overall.

2. Understand the loan term

Shorter loan repayment periods may come with lower overall interest paid, but they’ll mean higher monthly repayments, which can strain your cashflow. Longer loan terms offer breathing room, but increase total interest paid.

It’s about balance. Choose a loan term that supports your cashflow while remaining cost-effective.

3. Check for hidden charges

Some lenders include charges that aren’t always obvious at first glance. These may include:

• Annual review fees

• What happens at end of any short-term commitment period (additional fees, change in interest margin for example)

• Early repayment costs

• Exit penalties

• Legal costs which may include payment towards Banks own appointed lawyer

• Security fees or personal guarantee costs including costs of separate lawyer to provide Independent Legal Advice

Ask for a full breakdown of charges or better still, let your broker handle this for you.

4. Compare repayment flexibility

Can you overpay or settle early without penalties?  Will the lender agree an Interest Only (Capital Holiday) period ? These small details can make a big difference if your circumstances change.

Repayment flexibility can be just as valuable as a low rate, especially in the early years of ownership.

5. Review security and guarantees

Some lenders will require security against the practice, your home, or other assets. Others may require personal guarantees from the company directors.

Understand what you are signing up to and make sure you’re comfortable with the risk.

6. Request a side-by-side comparison

It’s easy to feel overwhelmed comparing 20-page loan documents. At FTA Finance, we summarise your options in a simple side-by-side breakdown, showing:

• Monthly repayments

• Total cost over loan term

• Overall set up costs and ancillary fees

• Flexibility

• Lender terms and conditions

This helps you make a clear, informed decision without hours spent reading small print.

Final Thoughts

Choosing the right loan isn’t just about numbers, it’s about strategy. The best funding supports your business goals, preserves your working capital, and allows room for growth.

Need help comparing offers?

Speak to FTA Finance today – we’ll help you avoid hidden costs, spot the real value, and secure a deal that supports your future.