How much cash actually reaches your account after a percentage establishment fee and fixed fees are deducted.
Many non-bank and online business lenders charge an establishment or origination fee as a percentage of the approved amount and deduct it, with fixed fees, from the funds at settlement. You repay the full approved amount, but you receive less. This calculator shows the gap.
Formula: fees = amount × percentage ÷ 100 + fixed fees; cash received = amount − fees.
Worked example (illustrative): an $80,000 loan with a 3% origination fee and $650 of fixed fees. The percentage fee is $2,400, total fees are $3,050, and $76,950 reaches your account. If you need exactly $80,000 in hand, you would have to borrow about $83,145 ($80,650 ÷ 0.97), and pay interest on that larger amount.
Why it matters: a fee deducted upfront raises the effective cost of a short loan sharply. The $3,050 is about 4% of the cash received, but because the balance falls as you repay, its effect on a 12-month amortising loan is roughly double: at a 12% interest rate, the effective annual cost on the cash received is about 19%, around 7 percentage points higher. Use the result as the true principal when comparing offers in the quote comparison worked example.
Limits: it does not include fees charged later (monthly account fees, line fees, early repayment fees) or GST that may apply to some fees.
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