Business loan calculator
What is a Business Loan?
A business loan allows you to borrow a set amount of money where monthly repayments can be paid over an agreed term. The loans can be a fixed or variable interest rate.
Depending on the size of your business, you can borrow both small and large amounts that can be repaid over shorter and longer time periods.
When applying for a business loan, you will need clear business plan of how you plan to use the money and how you plan to pay it back. Starting to plan your finances is where a loan calculator can come in useful.
What does a Loan Calculator do?
A loan calculator can help you work out the cost of a loan in a quick and non-committal way. If you are looking for a loan to help you with the costs of your business, whether that’s for a startup or for expanding an existing business you can check how much it’s going to cost and what kind of repayment plan will be affordable before you start looking for providers.
Although calculators are a good way to get a rough idea of what your costs will be, the actual amount you are offered will depend on a range of factors including the amount you wish to borrow and the duration of the repayment term. Lenders will also take in to account other factors such as:
Your credit rating and history, your business plan, the performance of your business, your previous accounts.
How does the Calculator Work?
Calculators work off a very simple basis. You simply input how much you’d like to borrow and for how long. You can also input the interest rate which you are going to be paying or even work out how high the interest rate can be before it becomes unaffordable.
Once you’ve input these details, the results will illustrate how much you will be paying monthly, how much total interest you will pay and the total amount which you will pay back.
This provides you with a clear way to plan your finances and secure a loan.
Things to consider
If you are thinking of taking on a loan of any type you need to consider that loans are long term commitments usually taking years to fully pay off. You therefore want to ensure you are getting the best loan you can to suit your specific needs.
You can use the calculator on this website to compare different loans from a large selection of providers, to help you see what the different options for you are.