If you’re looking for an easy way to compare business loans, SMART Box™ is the solution. It shows key pricing metrics so you can compare the real cost of capital from different lenders. Because when it comes to comparing business loans, it pays to think inside the box.
AFIA compliance and what it means for you
Moula is a founding member of the AFIA Code of Lending Practice. That means we comply to a code of conduct to better help business owners and promise to:
Be honest and ethical
Give you clear information about our loan products
Consider your financial circumstances when we lend
Deliver high customer service and standards
Deal fairly with any complaints
Focus on our customer
Comply with our legal and industry obligations
Support and promote this code
See how SMART Box™ can help your clients get a better deal
When time is money, it pays to save both
Why should you use SMART Box™ to compare business loans? We understand that time is money for finance brokers, and we’re here to help you save both. SMART Box™ helps you compare the most important metrics across different business loans from different lenders. So you can help your clients make good business decisions with confidence. Here’s how to use SMART Box to help your client.
How to use SMART Box™
First, you need to ask lenders for a SMART Box™ so you can objectively compare business loans. SMART Box™ includes seven key comparison metrics, but the most useful metric is the Total Cost of Credit.
Total Cost of Credit (TCC)
Total cost of credit is the answer to the question: how much am I paying to borrow this capital? TCC is the most objective metric to compare different business loans. It shows the total amount of interest, fees and charges, which is most business owner’s primary objective when comparing lenders.
Annual Percentage Rate (APR)
APR can be a helpful to compare interest rates on business loans with different terms and repayment periods. But it’s important to note that APR doesn’t account for hidden fees and charges. So while one loan may have a lower APR, it may ultimately have a higher TCC because of hidden fees and charges.
Below is an example SMART Box™ for a $10,000 business loan over a six-month term. When your clients apply, they will receive a SMART Box™ in their loan offer.
Example Loan Amount
(Loan Amount less Origination Fee)
Total Repayment Amount
(including Loan Amount, Interest Expense, and Other Fees)
Total Cost of Credit
Total Cost of Credit:
This is the total amount you will pay in interest and other fees for the Loan.
The amount does not include fees and other charges you can avoid, such as interest at a default interest rate on overdue amounts, late payment fees and dishonour fees.
See the agreement for details on these fees and charges (see clause 2.7 of Moula's Letter of Offer)
Average Monthly Payment
Total Repayment Amount:
Term (in months):
Average Monthly Payment:
This is the Total Repayment Amount divided by the Term.
The amount does not include fees and other charges you can avoid, such as interest at a default interest rate on overdue amounts, late payment fees and dishonour fees. See the agreement for details on these fees and charges (see clause 2.7 of Moula's Letter of
This is an estimate for comparison purposes only.
Term (Months) = (Last Payment Date – Disbursement Date) * 12 / 365.25
Eg Term (Months) = (Monday 8th July 2019 – Monday 7th January 2019) * 12 / 365.25 = 182 * 12 / 365.25 = 5.96 months
Rounded up For example = 182 * 12 / 365.25 ≈ 6 months
Total Interest Percentage (TIP)
Total Interest Percentage:
This is the Interest Expense expressed as a percentage of the Loan Amount.
This metric is exclusive of fees.
Annual Percentage Rate (APR)2
Your Loan will have fortnightly payments of:
This is the rate that can be used to calculate the cost of the loan, taking account of the reducing balance of the Loan Amount, expressed as an annual rate.
This metric is exclusive of fees.
Cents on the Dollar
Interest Expense and Other Fees:
Cents on the Dollar:
This is the amount of the Interest Expense and Other Fees (if any) that is payable for each dollar borrowed.
This metric is exclusive of Origination Fee.
Does the early repayment of this Loan result in any new fees or charges?
Does the early full repayment of this Loan result in a reduction in the Total Repayment Amount?
(Refer to clause 15.2 of Moula's Business Lending General Terms)
1 The Disbursement Amount is the amount of the loan that is available for you and may be less than the Loan Amount. A portion of the Disbursement Amount may be used to pay off any amounts owed from a prior loan or an amount owed to a third party.
2 APR should be considered in conjunction with the Total Cost of Credit. For a particular loan, the APR is that APR required to solve the loan amount calculation formula made available on the AFIA Code of Lending Practice webpage (see www.afia.asn.au/aosbl).
At Moula, we believe in backing good business. So if your client can pay off their loan early, there will be no penalty, no fees, and no charges. They simply pay the interest for that payment period (one fortnight) and the outstanding loan amount and that’s it.
No hidden fees. No surprises.
We abolished all fees so you can easily calculate the total cost of a business loan upfront. In fact, we’re so passionate about transparency, we built a business loan calculator so you can see exactly how much a business loan will cost your client ahead of time.
SMART Box™ – the sum of its parts
Please remember that SMART Box™ figures are based on the reasonable assumption that the loan repayments are made in accordance with the loan schedule.