Business lenders typically look at personal over business credit scores, so improving your personal credit score can help you qualify for a lower rate. Prequalifying with a few can help you find a lower-cost loan. Different lenders use different criteria when coming up with your business loan amount, rates and terms.
A shorter loan term means there’s less time for debt to add up - but it’ll increase your monthly cost. You have a few options to lower the cost of your business loan - both in the short and long term. How can I reduce the cost of my business loan? The total amount you’d pay for that loan including the principal, interest and fees. How much you’d pay each month with the current or ongoing interest rate.
How much you’d pay each month under the first interest rate during the fixed period. Also known as a prepayment penalty, this is the fee lenders sometimes charge if you pay off your loan before it’s due. All other recurring fees that you pay on a monthly or annual basis. A legit lender that charges upfront fees will process payment when your funds are disbursed - not before. Upfront fees include application fees, origination fees and processing fees. Any one-time fee involved in the application process. The interest rate you’ll pay for the remaining loan term. The amount of time that the original fixed rate applies to the business loan. Ignore the fixed rate if the interest rate won’t change over time. The original interest rate on a loan for an initial period of time. How long your business has to repay the loan, in years. How much your business plans on borrowing. Read up on these common business loan terms: Enter the amount of any prepayment penalties next to Early repayment.ĭefinitions to know when calculating business loan costs.Select Annually or Monthly depending on how often you’ll pay the fees. Enter the total cost of all recurring fees either per month or per year next to Fees.Write any one-time application or origination fees that you’ll pay for your loan next to Upfront fees.Next to Ongoing rate, enter the rates you were pre-approved for from the lenders.Otherwise, enter the amount of time this rate applies to your loan. Skip Fixed period if you skipped the previous step.Otherwise, write the interest rate you qualified for for the initial period of the loan. Skip Fixed rate if your rate won’t change over the loan term.Or enter the names of two lenders you’d like to compare. Next to Bank name, write one lender’s name where it says My lender and a second lender’s name in the field that reads Other lender.Enter the amount you would like to borrow for a business loan next to Loan amount.Next to Loan term, select the amount of time you have to pay back both loans.You can still use this calculator without entering all the fields - sometimes it won’t be necessary. If you decide to compare 2 loans, you’ll see the lender that costs less over the term you choose. Compare interest and fees, and calculate the fixed, ongoing and total cost of repaying the loan.Īfter you’ve entered the details of your loan options, the calculator shows you the cost of monthly repayments and the total amount you’ll pay back in principal and interest.
BUSINESS FINANCE CALCULATOR FULL
The business loan calculator below allows you to put in details of 2 loans to compare the full cost of each. Business loan calculator for comparing loan options Not happy with the results? Check out our list of lenders below to find one that fits your budget.
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