As a small business owner, you know a small business loan could be the solution to boost your company. After all, it’s a lump sum of money you could use for all those things you’ve been putting off for so long: buying new ovens for your bakery or espresso machines for your coffee shop, ordering pieces in bulk, hiring an extra pair of hands in the kitchen, moving to a new location in a better area, starting a marketing campaign, or even getting a new vehicle for deliveries.
The possibilities are endless. But all that it’s easier said than done. Or so you think. You are hesitant about taking the first step, and that’s only natural. We all have heard the dark stories about business loans: hidden costs, fees, and those interest rates creeping up!
You may think the real cost of a business loan could hurt you in the long run. You may think the effects could be disastrous. You may think you could even end up losing your personal assets!
Well, think again. Or, actually, don’t think at all. Put your mind at ease stop wandering: just use a business loan calculator. A real and easy-to-use tool that can provide you with actual and accurate figures to inform you precisely af all the costs involved in a business loan. Now you can stop wondering and start taking measures to turn all those plans into a reality.
How to Know Exactly What Your Business Loan Will Cost
Camino Financial has created a Business Loan Calculator for business owners to use to figure out exactly what their business loans will cost them. Once you have considered all the areas that you could improve in your business, project a dollar amount you would like to receive in a loan. The calculator will do the rest for you: it will inform you not only of how much you’re going to receive, but also how much you are going to pay, how long you are going to make payments, and what the fees and interest rates on the loan will be.
How the Business Loan Calculator Works
Camino Financial business loan calculator allows potential clients to input their desired loan amount, the expected monthly payments (from 24 to 60 months), and the potential interest rates (1% to 2.5%). Once that is done, the calculator gives you the following information on your proposed loan:
- Closing Fees: The amount of closing fees to be paid on the loan. This amount is deducted from the loan amount on the day it is funded.
- Total Interest Paid: The exact amount of interest that will be paid during the term of the loan.
- Cost of the Loan: How much the entire loan will cost, including the closing fees and total interest to be paid.
- Monthly Payment Amount: The amount that you will pay monthly for the loan.
As an added bonus, the calculator also lists some helpful tips to consider when taking out a loan, including what percent of your monthly income your loan payment should be and how to balance the cost of the loan with the expected benefit coming from the loan.
What Happens Next?
Once you know how much the loan will cost you and how much your monthly payments will be, you will be in a much better position to judge whether that business loan is the correct decision for your business. You may find that you have to readjust the loan amount, or that you may need to spread out the payments over a longer period of time.
Derek Tallent is a writer for Camino Financial, an online lender for small business loans. He has a degree in Bachelor of Arts in Political Science from the University of Texas at Dallas. Not only has he written numerous academic papers on subjects ranging from multinational corporations to Supreme Court appointments, but also he has a knack for creative writing.