The total cost of borrowing beyond the amount financed, such as interest and certain fees.
For example, a business borrows $50,000 over 3 years at 9% interest and pays a $750 origination fee. The total finance charge — the cost of borrowing above and beyond the $50,000 principal — works out to approximately $7,940 in interest plus the $750 fee, for a total of $8,690.
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