Receiving the right funding for your business is essential for its growth. Our business loan calculator lets you analyze different scenarios quickly and efficiently. With just a few simple questions, you'll be able to see how much that business loan will cost your company. Before you sign for the loan, use this calculator to make sure you understand the total interest and fees that you'll pay over time. Fortunately, with this calculator, you'll have all the information you need to make the right decision for your business. With the right lender, interest rates are relatively low for all types of business loans right now. As such, now might be the perfect time to get the money you need to expand your business in new and innovative ways!
How to get a business loan?
Getting a business loan is a little different than obtaining a personal loan. First, business loans are generally available to corporations and LLCs. If you're operating as a sole proprietorship, it is possible to get a business loan. However, the process is much more complicated, and, more likely than not, you're going to be personally responsible for paying it back. Therefore, a sole proprietorship loan would effectively be a personal loan. If you do have a corporation or LLC, then you'll have to apply for a business loan using your entity's information (including your company's credit profile and credit score). Depending on how long you've been in business, you may need to provide a personal guarantee. You can apply for a business loan with the Small Business Administration or a bank. You'll need to provide information about your business, income, expenses, and other essential information. The lender will pull your company's credit report and make a decision.
How much can I borrow for my business?
You can borrow as much or as little as a lender will give you! Business loans for capital equipment could be in the millions of dollars. Conversely, the SBA will provide guaranteed loans for as little as $500. To estimate how much a lender might give your business, analyze your income, expenses, and profits. Also, take into account how long you've been in business and how stable that income is. The more your company makes and the more stable your income stream is, the more your business will be able to borrow!
How to get a small business loan?
Unfortunately, the options for loans for small businesses are fewer than for more prominent companies. Most banks will require a minimum annual revenue of at least $50,000 to consider making the loan. Some will want to see at least $100,000 or more. Most banks will also want your business to have been operating for at least a year before being willing to lend any money. If you're a small business that meets those requirements, you should be able to find a loan with any lender. However, if your business has been operational for less time, you're just starting, or you don't quite have the revenue yet, you still have options! The SBA provides loans to small businesses of all sizes. Furthermore, you can obtain a loan with an online lender or a microlender. Please note that these non-SBA and non-bank lenders often have elevated APRs, so keep that in mind when applying and use realistic APRs in this business loan calculator.
Enter the amount that you'll want to borrow for your business. Be realistic with the amount of money that you will need. Enter an amount that will provide enough flexibility and cash flow to ensure that your business can make the most use out of those funds.
When you apply for a loan, the bank will often charge a flat fee (e.g., $500) or a percentage of the loan (e.g., 3%) to process the paperwork to start the loan. Banks call this the loan's "origination fee". Put the dollar amount in this field of the business loan calculator. If you don't know the origination fee, put in 5% of your requested loan amount to be on the safe side. If your financial institution winds up charging less, that's great! You'll have a smaller monthly payment, but you'll have budgeted, at least, for the worst-case scenario.
Enter your expected documentation fee in this field of the business loan calculator. Documentation fees are standard for certain types of business loans. They cover the cost of reviewing the documents and packaging them up for the underwriter.
This business loan calculator should only be used to estimate your repayments since it doesn't include taxes or insurance.