With fixed fee funding, you know the full cost of your funding before you accept it and it does not change. Interest is charged on what you still owe, so the total cost depends on the rate, how long you take to pay and whether the rate moves. A GoTyme Business Advance has one fixed fee agreed up front and no interest.
How interest adds up
When funding charges interest, the cost grows the longer the balance stays open. If the rate is linked to the prime rate, it can also rise during the term, so the same amount can end up costing more than you planned. With compounding, interest is also charged on interest that has already been added.
Here is a simple way to think about it. If your funding takes longer to settle than planned, perhaps because of a slow season, interest keeps building for every extra week. The longer the balance stays open, the more you pay, even if you never use another rand.
How our fixed fee works
With a GoTyme Business Advance, we agree one fixed fee with you before you accept. That figure is the total cost of the funding. It does not grow in a slow month and it does not move with interest rates.
That makes the conversation simpler too. You can ask what the funding will cost you in total and get one clear answer before you commit. There is no rate to watch and no statement to decode at month end.
Fixed fee versus interest at a glance
- Total cost. A fixed fee is known up front. Interest depends on time and the rate.
- Rate changes. A fixed fee stays the same. Interest can rise during the term.
- Budgeting. A fixed fee goes straight into your budget. Interest needs a forecast.
- Slow months. With flexible payments linked to your turnover, you pay less when sales dip and the fee stays the same.
Why it matters for planning
Knowing your full cost up front makes it easier to price your products, check that a purchase will pay for itself and budget your payments. You choose fixed payments (a set amount daily or weekly) or flexible payments linked to your turnover.
Take a restaurant buying a new oven. With a fixed fee, the owner knows the total cost up front and can work out how many extra covers the oven needs to pay for itself. With interest, that sum depends on how quickly the balance is cleared and where rates go next.
See how a GoTyme Business Advance keeps your costs clear from day one.