# Establishment fee

> A one-off charge for setting up a loan. Some lenders take it out of the money you receive, and others add it to what you repay.

An establishment fee makes a loan more expensive, especially on a short term. [Prospa](https://smallbusinessloan.co.nz/lenders/prospa), for example, charges 3% to 4%. Add the fee in the [true cost calculator](https://smallbusinessloan.co.nz/tools/true-cost) to see how it changes the annual rate.