Over the last few years, there’s been much discussion about The Great Resignation, where people are quitting their jobs and seeking alternative employment. This has seen many folks jump into starting their own business, following their dreams of becoming their own boss. On the flip side are people experiencing significant business growth but lack the cash flow or capital to jump on that growth.
Whether you’re dreaming of starting a business or already have one but need a bit of extra capital, a business or commercial loan can help. We thought we’d look at how business loans and a business loan calculator can help you.
What is a business loan?
A business or commercial loan is an agreement a borrower makes with a lender to secure a specified amount of money over a specific time. Business loans are an instrument that allows professionals to create their business or develop it. Business or commercial loans can also cover expenses such as the company’s creation, business purchases, shares, or production equipment.
What kinds of business loans are there?
Generally, there are four types of business loans, short-term loans, long-term loans, lines of credit, and alternative financing.
Let’s take a closer look at each of them.
Typically are for a set amount borrowed over a 12-month term. The credit amount is often limited, starting from just a few hundred dollars. Short-term loans are suitable for businesses and individuals who require temporary financial assistance.
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Long-term loans
Usually, have terms starting from 12 months. Long-term loans allow you to borrow larger amounts and pay lower interest rates than short-term loans. Also, as the payments are spread over a longer period, your monthly charge are often smaller.
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Lines of credit are like credit cards
Once you set a limit (e.g., $50,000), you use them as you need and pay the interest rate for the money you’ve used. Then you receive and return the funds of your own free choice if you do not exceed the credit limit.
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Alternative Financing
There are several other ways of raising capital, including crowdfunding, leaseback, and invoice financing. However, often you can only borrow a small amount with a higher interest rate.
How are loan costs calculated?
- With any loan, business, commercial, car, or personal, borrowing costs are associated. Costs are dependent on the following:
- The amount borrowed
- The interest rate
- The loan’s duration
- The payment frequency
The overall cost of your loan equals the difference between the total monthly payment and the loan amount. An online loan calculator can provide valuable insight into how much money you can borrow. Explore Yes Loans’ online loan calculator.
Benefits of using an online business loan calculator
Suppose you are considering applying for a business loan to finance the growth of your business, buy new equipment, or hire more employees. In that case, a business loan calculator can help you determine the monthly repayments for different types of loans.
Here are some more advantages of using Yes Loans’ business loan calculator
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Get all the information you need
If you have difficulty calculating interest rates and loan costs, then a calculator can help. Enter a few details, and with a press of a button, you get all the information you need.
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Real-time information
Use the calculator to enter the most recent interest rates so you can see exactly how much your loan will cost you. point to change. This data can help business owners make the right business planning decisions for their company.
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Mobile friendly
The Yes Loans online loan calculator is easy to use on your phone. More and more people are using their mobiles to access information, and we’ve made it accessible and easy to use, so you get the information you need when you want it. Create a bookmark for the web page and use it whenever you like.
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Allows you to try out different scenarios
A business loan calculator lets you change one or more inputs to see how it affects your monthly payment, interest, and the total cost of the loan. This is an easy way to figure out the optimal loan for you. Also, even if a lender approves you for a loan, it doesn’t mean you have to borrow the entire amount. A smaller loan might provide some wiggle room each month, allowing you some breathing space in case of an emergency or something unexpected occurs.
Business loans are essential for many business owners, and Yes Loans are here to help you get the money you need for your business fast.
Need some help with your business finances?
Our online loan calculator can help you simplify applying for a business loan, making it easier to see how much money you can afford to borrow. Remember, you must be able to adequately cover monthly mortgage payments, including principal, interest, and any fees, with the income you currently generate.
Get in touch if you need some advice about a commercial or business loan. Yes Loans offers fast, online business loans so you can start building your new empire.
Our personalised loans come with a range of options and loan protection insurance. Once you have finalised your budget, contact one of our personalised loan experts or apply directly for fast, efficient pre-approval.
Contact us today.