What is a business loan calculator?
If you need to raise finance for your business, you may be considering taking out a business loan. Whether you need to purchase assets, expand your property or just need some extra working capital, a business loan can be the perfect way to build and grow your business.
But how much is it going to cost you to borrow that money?
A business loan calculator is a tool that allows you to find out how much a business loan may cost you or your business. Business loan calculators are not intended to show you how much a bank will be willing to lend to you.
Loan calculators simply allow you to determine how much you or your business can afford to borrow by showing you how much you can expect to pay in interest.
How to use the business loan calculator.
To find how much a business loan may cost you, simply fill in the calculator below and you’ll receive a detailed payment report.
- Loan amount: Let us know how much your business needs to borrow in total.
- Interest rate: Let us know the interest rate you expect to receive for your loan. If you are unsure what interest rate to expect, contact us today.
- Term: Let us know how long you would like the repayment period to last.
Hit Submit and you will receive a detailed repayment schedule report.
What does the Business Loan Calculator show?
The business loan calculator does not show you how much you will be able to raise from a commercial finance lender. The business loan calculator provides an example loan repayment schedule to allow you to see how much a business loan may cost you in terms of interest.
By letting us know how much you wish to borrow, the interest rate and the repayment length, the calculator shows you how much you will be paying each month, how many months you will pay for and the balance of your remaining loan at each payment.
Example loan repayment schedule
How much interest will I pay?
The amount of interest you can expect to pay will vary from business to business and is determined by a wide range of factors. Your current financial situation, your past financial situation, your credit history, the assets you own and the debt you owe will all impact the amount of interest you will be charged.
For more information on how much interest you may expect to pay, contact us now.
How much can I borrow?
How much money a financial lender will allow you to borrow will depend on a wide range of factors. Simply put, the better able your business is to pay back the loan, the more lenders will allow you to borrow.
When you apply for a business loan, you will be required to provide financial documentation and information showing your business’s ability to repay the loan. This is calculated based on your current assets and liabilities, your credit rating and financial history and several other criteria.
If you can provide evidence that your business is a safe investment, financial lenders will provide loans of up to and exceeding £10 million.
What can my business borrow money for?
If you’re starting or running a business, the expenses never end. One of the best ways to raise the finance for your business is through a business loan. Business loans can be taken out to cover almost any business expense you may encounter.
From a loan to buy a business, to a business mortgage loan to purchase or develop commercial property, you will be able to apply for business loans to cover the big, expensive purchases that you simply would not be able to afford alone.
You can also take out smaller loans to cover expenses that you could pay yourself, but would eat in to your working capital and make a dent in your cash flow. Inventory, office supplies and working capital can all be covered with a business loan.
Business Loan Calculator: Next Steps
Now that you have an idea on how much you can afford to borrow, contact us immediately. Just let us know a few key financial deals and we’ll get to work finding you the best deal for your business.
Please download and use our free financial templates to help manage your finances.
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