There are many reasons to begin your business loan search using a calculator. Most importantly, to help you evaluate the decision about the loan terms your budget can handle. Companies can qualify to receive a set amount for funding, whether at the initial startup or ten years in business. Here are 4 compelling reasons to begin your business loan research using a business loan calculator.
Estimate Your Business Loan
Business loans are declined primarily due to the failure to prove that the business is robust, vibrant, and resilient to market conditions. The lending industry has a particular set of items necessary to be pre-approved. Small business owners often find themselves intimidated by the application process and do not apply. The very first question you should answer for your company is:
- How much can I borrow?
- What do I qualify for?
Calculate Your Business Loan Interest
Many free online business loan calculators can help you begin learning what you can qualify for and how much it will cost. Using a calculator helps to quickly compare monthly payments, varying interest rates, and how loan term options affect annual payments made. Of course, they also come in several formats:
Use Current Business Loan Rates To Fit Your Budget
Protect your budget by learning the current business loan rates. Online lenders typically charge rates between 6% to 99% APR on business loans. You’ll likely find the lowest rates through SBA 7(a) loans set based on the daily prime rate plus a lender spread.
Most small businesses try to apply first for the Small Business Administration 7(a) loan program. The SBA works as the middleman between lending partners, such as banks and other financial institutions, to offer low-cost loans. Reasons for finding can include working capital, refinancing, equipment, inventory, and different business needs.
Learn The Business Loan Requirements To Apply
The SBA does not explicitly loan money under the 7(a) loan program as they guarantee a portion of the loan. It sets the limits on interest rates, fees, and term lengths the lenders can offer.
They will evaluate your ability to
- cover business expenses
- improve business awareness and expertise
- invest $1 in equity for every $3 of business loan lent
- meet the personal and business credit checks to prove creditworthiness
Use the right tools to help you make smart decisions to compare and negotiate your best deal with the lender.