Business have different stages of growth, from startup to Fortune 100. In these stages, one asset that helps fuel its growth is capital. This resource, if not accounted for accurately, will not be available when growth opportunities arise, when your business is recovering from losses or when you’re expanding your operations.
A small business loan is one of the most common and recommendable ways of financing. Loans help business owners kick-start and grow their businesses. However, as much as it may seem easy to apply and receive a loan, there are several steps and factors to consider before signing on the dotted line to avoid future regrets. A business loan calculator is, therefore, one of the most important tools when borrowing money. It gives you an insight into how much it will cost you to borrow the loan and the terms and conditions that apply. It makes it clear on the interest rates and the total time you will need to pay back the loan.
Camino Financial business loan calculator is one of the loan calculators in the market today. This calculator helps you calculate the cost of a small business loan by giving you the value of the credit and the monthly payment amount.
Here is more information and guidance.
How to Use the Business Loan Calculator
This business loan calculator is one of the calculators with direct and easy steps for you to operate. There is no specialized training or skills required for one to use this business loan calculator. Below are some of the skills involved.
- Enter the amount that you desire for your You may consider the current goals or needs in your business to give you an insight of the appropriate loan amount to borrow. However, avoid borrowing more money than you need to use in your business.
- Next, enter the number of monthly payments that you would like to make. This should, however, range from 24 to 60 monthly payments.
- The next step is selecting the monthly interest rate. The monthly rate that you choose should range between 1% and 2.1%.
After correctly filling in the above fields, click on “calculate” on the business loan calculator. Have a keen look at the cost of the loan, monthly payments, and the loan terms. In case you are not satisfied and would love to run a new calculation, click “reset calculator” and the calculation will run again.
When using the business loan calculator, there are some business loan terms that you may come across. Understanding these terms is essential to help you maximize on the use of the calculator. Some of these include:
- Annual interest rate: this is the interest rate that you will pay per year. This also gives you the total interest paid.
- Loan amount: the loan that you request.
- Closing fee: this is the amount you pay for the loan. It is deducted from the loan amount on the day funded.
- Documentation fee: there is no documentation fee needed since the application is online, thus paperless.
- Funding fee: this is the amount that normally a bank charges for sending you the money. The funding fee is deducted from the loan amount.
- Cost of the loan: this is the sum of closing fee, funding fee, total interest, and documentation fee.
More often than not, different businesses face occasional financial shags. During this time, a business loan may be seen as the way out for the business to get back on its feet. When applying for the loan, however, it is essential to have a business loan calculator to show you the real cost of the loan.
Monica Lynn Williams
Monica is an experienced professional in the world of business, finance, literature, Cryptocurrencies and IT. Having been in the writing industry for the last 12-years, she has spent most of her career time writing articles, blog posts, products reviews, tech texts, and buyers guides. She is also a writer for Camino Financial, an online lender for business loans.
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