Digital online tools are a huge aid when you’re on the fence about whether you can afford a small business loan. There’s no reason to put off taking a peek and evaluate if you can add a monthly payment to your budget. These calculators provide a straightforward approach to financial planning so there aren’t any surprises—now or later. Additionally, they’re free and very helpful when you need to see the bigger picture. The gadget crunches the numbers so you don’t have to.
Before you discover how easy a business loan calculator is to use, consider the rationale for securing a loan online. Knowledge is power especially when you’re deciding how to complete the next projects listed on your business plan.
Reasons to Consider Applying For a Business Loan
- Collateral Not Required: You won’t need to use equipment, vehicles, and other assets to qualify for a loan. An unsecured loan means a lender can’t take possession of business property should you default on loan payments.
- Short-term Loans: Convenient repayment terms average between 24-60 months. These shorter-term loans keep you from paying interest for 10 or more years. That puts more money in your pocket you can use toward business growth.
- Web Loans Are Quicker: After completing a simple online application, a financial specialist guides you through the loan process. Normally, an online lender needs at least 6 months of bank statements along with tax returns and financial statements. Depending on the loan type, other documentation may be required. For convenience, online loans require less paperwork than a traditional bank loan. In most situations, once the loan is approved, you receive funds within 4-10 days.
- Convenience: Applications are usually no longer than a page you can complete using your computer, smartphone, and a fax machine. Send financial records to the online lender using a home/office scanner. Keep in mind, the loan process occurs in the privacy of your home or business office.
- Pre-Qualification: Newly organized businesses may not have a credit score in a range that lenders prefer. Because pre-approval is built into the loan process, lenders are able to advise borrowers whether they qualify for a loan and the amount. Even if you have a lower credit score, it’s still possible you may qualify for a loan.
- Minimum Requirements: Business owners should have been in business for at least 9 months so lenders have enough information to process the loan. Additionally, minimum annual revenue should be at least $30,000 or $2,500 per month.
- Easy Access to Funds: Upon loan approval, lenders can make an electronic transfer to your business checking account. You aren’t waiting for days to receive a paper check in the mail.
- No Penalty Fees: Prepayment penalties can be hefty and take a bite out of your cash flow. If you have the funds to pay off your loan early, most online lenders don’t charge a fee.
A Business Loan Calculator Is Super Easy To Use
We live in a digital world so it makes sense to use online technology for financing and faster results. Moreover, online tools such as the Camino Financial business loan calculator are readily available to streamline the loan process. Answer a few questions and these user-friendly calculators go to work to provide computations instantly.
- Enter your desired loan amount in the blank provided and labeled “loan amount”. Take as much time as you want to experiment with lower and higher loan amounts to determine loan affordability..
- For the tool to calculator properly, you need to fill in the payment terms. Click on the available drop-down menu and select your desired payment term. Again, play around with different scenarios to achieve the best fit for your budget.
- The calculator also needs your desired monthly interest rate and includes a list ranging from, for example, 1% to 2.25%.
- Click on Calculate.
- Review the information provided that includes the closing fee, total interest paid over the life of the loan, your monthly payment amount, and the total cost of the loan.
- Let the tool help you determine the exact amount that suits your monthly budget in relation to other operating expenses. Re-enter different loan amounts, payment terms, and interest rates. Use the tool to make as many calculations as you want.
Once you receive funds, you’ll be able to complete items on your business plan. Simply check them off and call them done. Beef up your inventory, launch a campaign for new products or keep your business running smoothly by replenishing working capital. Maybe now’s the time to add a piece of needed equipment or build on an additional space for storage or stocking products. Has lingering debt slowed down your cash flow? Now’s the perfect time to pay it off.
Camino Financial business loan calculator helps you check the numbers and plan ahead before applying for an online business loan. From beginning to end, these non-traditional online loans are hassle-free and save you time so you can focus on other things—like how to use the funds.
About the Author: Betsy Wise
Within a 30-year period, Betsy worked as a Deputy Clerk for a school board and as Accounting Manager for the boat, construction, and legal industries. Currently, she spends her days as a self-employed freelancer and blogs at her website WritingForJesus.com. Betsy also writes for Camino Financial, an online lender for business loans.
You can also read: 10 Simple things that leads to Business Success