Any competitively dynamic small business involved in the marketing of a product or service will, at some point in time get the urge to grow some more, expand its operations and establish a stronger presence in its market. Depending on the nature of the business, these expansion plans could range from developing new outlets and channels of distribution, hiring and training new personnel, getting into some promotions and advertising, perhaps some PR, renovations or even attending specialized seminars and trade shows for its key people. What this really boils down to is … money. Some businessmen may have it, some may not. What is common to both is that they know small business loans are a good investment. The only question they are likely to ask themselves is …”What’s it going to cost me and my company?”
Business Loan Calculator
If you’re an entrepreneur and can relate to the preceding paragraph, you may want to check out this business loan calculator courtesy of Camino Financial. It has a handy, easy-to-use tool that will give you the answer to the question of small loan costs. So, if you’re considering one, this business loan calculator takes the guessing out of the equation and provides you with the specifics on what your monthly payment will be, the monthly interest rate and the cost of the whole thing.
Here’s how it works: (in the blank spaces provided…)
- Enter your desired loan amount
- Click your preferred number of payments (simply choose from a selection of 24-60 months)
- Choose the interest rate (1%-2.1%)
- Click “Calculate”
The results will show you how much you need to pay back monthly and how much the loan is going to cost you. You may evaluate this information as it will help determine if the figures are running parallel with your plans. If, for whatever reason, you would want to run a new or revised calculation, just click reset calculator and enter a new set of information. You can reset it till you find the figures that will best suit your current business situation.
Because this tool aims to give you a picture that comes close to reality as possible, you may also find some elements as documentation and closing fees. You don’t have to give this much weight as the actual figures (if any) will generally come up as the loan goes through the process of finalization.
Important reminder: Interest rates – As you would know (being a businessman) interest is charged on all types of loans and mortgages. Naturally, these impacts on the cost of whatever loan amount you may decide on taking. This is another factor that comes into play when calculating a small business loan cost. You, of course, would be in the best position to know how your credit status stands and ultimately the kind of interest rate you can expect. But putting this aside along with the other minor factors, using the business loan calculator should give you a pretty good picture of how your costs should look like when considering a loan.
A lot of smart entrepreneurs who may find themselves in need of additional sources of funding generally tend to see small business loans as key in realizing their company’s potential for growth. Particularly when they feel the timing is right, they … as the poets say … seize the day! If you’re one of those who may be convinced that the right time is now, it will help your decision process to use this business loan calculator. Knowing your costs, going into a growth-oriented direction gives you that competitive edge.