Loan Offer Analyzer
Enter the key terms from a business loan or MCA offer and get an instant risk assessment. This tool checks for confession of judgment clauses, disguised factor rates, daily payment traps, excessive fees, and other predatory practices. You get a color-coded report card, detailed findings for each issue, true cost calculations, and a comparison to fair market rates.
Loan / Advance Terms
Enter the key terms from the offer you received. We do not store any of this information.
How much you would receive
Example: 1.35 means you repay $1.35 for every $1 borrowed
Per payment, if stated on the offer
Understanding Predatory Business Lending
Unlike consumer loans, business loans have fewer regulations. This creates opportunities for predatory lenders to use confusing terms and dangerous contract clauses. Merchant cash advances, short-term online loans, and other alternative financing products can carry effective APRs of 50% to 200% while disguising the cost behind factor rates and daily payment structures. This tool helps you see through the marketing and understand what you are actually signing.
The Most Dangerous Loan Terms
A confession of judgment (or "cognovit note") means you agree in advance to let the lender win any lawsuit against you without going to court. If you miss a payment, they can seize your bank account and business assets without notice. These clauses are banned in many states including California, New York, and New Jersey, but still appear in loans issued from other states. Factor rates are another common trap: a 1.35 factor rate sounds low, but on a 6-month advance it equals roughly 70% to 85% APR. Use our factor rate to APR converter to check any factor-rate offer.
Red Flags When Shopping for Business Loans
Watch out for lenders who will not disclose APR (only factor rate or total payback), pressure you to sign immediately, do not ask about your ability to repay, found you through cold calls or spam, require upfront fees before approval, or guarantee approval regardless of credit. Legitimate lenders evaluate your financials, explain terms clearly, and give you time to review. When comparing offers, use our loan comparison tool to see total cost differences side by side. SBA loans typically run 6% to 10% APR, bank term loans 7% to 15%, and competitive online lenders 15% to 35%.
What to Do If You Already Signed
If you have already signed a predatory loan, start by reviewing the agreement for illegal clauses. Confession of judgment may be unenforceable in your state. Calculate the true APR, because misrepresented costs may give you grounds for a regulatory complaint. Look into refinancing to a lower-rate term loan or line of credit with monthly payments. If you find illegal terms, consult a business attorney. You can also report predatory lenders to your state attorney general. Talk to a funding specialist about refinancing options that could lower your cost, with no impact to your credit score.
How It Works
Enter the Offer Terms
Input the loan amount, cost structure (APR, factor rate, or fee), repayment term, and payment frequency from the offer you received.
Answer the Red Flag Checklist
Tell us about specific clauses: confession of judgment, personal guarantee, prepayment penalties, liens, and more. "Not Sure" is fine for any question.
Get Your Risk Assessment
See a color-coded report card with severity counts, detailed findings for each issue, true cost calculations, and a market rate comparison.
What You Get
Red Flag Detection
Checks for confession of judgment, high factor rates, daily payment traps, blanket liens, stacking restrictions, and other predatory terms.
Effective APR Calculation
Converts factor rates and fee structures into an estimated APR so you can see the true annual cost of the offer.
True Cost Breakdown
See exactly how much you receive, how much you repay, the total financing cost, and your per-payment amount.
Market Rate Comparison
Visual comparison of your offer against typical SBA, bank, and online lender rates so you can see where it falls.
Detailed Findings
Each issue gets a card explaining what was found, why it matters, and what you should do about it.
Risk-Based Recommendation
A clear verdict based on the severity and number of issues found, with next steps.
Loan Offer Analyzer — Frequently Asked Questions
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