What do I pay before a business loan settles?
Most commercial deals carry some costs before settlement, usually a valuation fee, sometimes an application or assessment fee and often the lender’s legal costs. Amounts vary a lot by lender and deal size. A straightforward equipment facility may have almost nothing payable upfront. A property deal with a full valuation and external lawyers will have more. You should see the figures in writing before you pay anything, not after. Ask for them early.
The costs that fall due early
Valuation is the common one on anything secured by property, paid to an independent valuer through the lender and payable whether the deal proceeds or not. Some lenders charge an application or assessment fee at the point they take the file on. Legal costs for preparing security documents are usually billed at settlement, though a complex structure can see part of it invoiced earlier. On a property purchase there is also stamp duty and your own solicitor, which sit outside the finance entirely.
What you get back if it falls over
Generally, not much. A valuation already carried out is a service delivered, so that money is usually gone even if the deal never settles. The same goes for legal work already done. Application fees vary and some lenders will refund part of one where the file has barely moved, though you should never assume it. The way to avoid wasting money is to sort out the obvious problems before a lender starts spending on your behalf. We will tell you when a deal looks unlikely rather than let you fund a valuation on it.
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Last updated 15th July 2026. Reviewed by Authorised Credit Representative 554584 of Australian Credit Licence 414426.