Business Loan Rates in Fort Morgan, CO: Two Offers for a Dental Office, Held to Term and Paid Off Early

In an invented case, a dental office needs $26,470 to pay clinical supply invoices while a batch of insurer payments runs late. It holds two offers. Offer 1 is a loan at a 16.35% annual rate over 18 months, with interest charged on the falling balance. Offer 2 states its cost as an invented fixed charge of $2,945, added to the amount and spread over 12 equal payments.

Held to the end, Offer 2 costs $612.42 less in this invented case, and its payment is larger because the term is shorter. On these numbers alone, the fixed charge looks like the better deal.

A side-by-side page like this one is worth building for any two offers, whatever the trade. Put the amount that actually reaches the account on the first line, since a fee taken before funding lowers it; then the way each cost is stated, the term, the payment and the total. An offer held to term is only one of the cases to price, so the next step is the month the balance will really end.

The office expects the late insurer batch in about six months and plans to pay the balance off then. Under Offer 1, interest runs only on what is still owed. After six invented payments the balance stands at $18,352.65, and paying it off at that point brings the invented interest to $1,891.79.

Offer 2 does not shrink. Paid off at month six, the office still owes the rest of the invented total, $14,707.50, so the full $2,945 charge is paid whatever the date. In this invented case Offer 1 now costs $1,053.21 less, the opposite of the full-term answer.

Stretching Offer 1 to 30 months works the other way: the invented payment falls to $1,080.83, but the full-term interest climbs to $5,954.90. A longer term lowers the monthly strain and raises the dollars, unless the balance is paid off early.

• The total of all payments if each offer runs its full term
• Any fee taken out of the amount before the money is deposited
• What each offer costs if the balance is paid off at month six
• Whether payments are collected monthly, weekly or each business day
• Whether either offer carries a personal guarantee or a lien
• What each partner does after a payment comes in late or not at all

The same lines work for a working capital loan, a term loan or an advance. A merchant cash advance is not a loan; it names a total to be collected from card sales rather than a rate, so the early-payoff question matters there too. The business loan types page explains what each type is built to pay for.

Get each line in writing, attached to the offer itself. An office comparing a loan held to term with one paid off early needs the payoff terms on paper to run the numbers above, and a partner that states them clearly makes the comparison possible.

Dental and medical offices are paid partly by insurers, so their cash arrives in batches that may run late. That makes early payoff a live question for them rather than a footnote, and it is worth asking about before comparing rates.

Offices of Physicians (NAICS 6211) had 9 employer establishments in Morgan County, CO in 2023, and 7 of them had fewer than five employees (County Business Patterns). Offices of Other Health Practitioners (NAICS 6213) numbered 14, with 7 under five employees, or 50.0%.

ZIP Code Business Patterns counted 6 physicians' offices at a ZIP 80701 address in 2023.

An office that expects to pay off early asks how each offer treats an early payoff first; an office that expects to run the full term weighs the full-term totals instead. Other cash questions are covered in the articles.