Running a business is both challenging and rewarding. No matter how well your business may be doing, it is always a balancing act between growing your business and having enough cash flow to run it effectively and efficiently. This becomes even more complex when you need to buy high-ticket items like trucks, computer equipment, plant and machinery.
Commercial loans are designed to help small, medium and established businesses do just this, maintain a steady cash flow but also be able to procure any assets crucial to growing their business.
Business finance
Business finance solutions are critical to growing a business and play a vital role in growing the local economy at the same time. But how do you go about getting the necessary finance and how much can you get?
What can I use a commercial loan for?
What you use your business loan for depends entirely on your business and its requirements. The most common items financed through a commercial loan are:
· Company cars, commercial vehicles and trucks
· General equipment
· Technology
· Debt repayment
· Cash flow
· Loan refinancing
How to get a commercial loan
Applying for a commercial loan is pretty simple and many lenders allow you to apply online. They will require certain details pertaining to your business’s status and its requirements; they may also require some financials to ascertain your credit worthiness.
Commercial loans calculator
If you’d like to get a rough idea of what your business loan repayments will be, you can use a commercial loans calculator. This will allow you to put in an amount and your preferred payoff terms, and get a very good idea of what your monthly repayments on your asset/s will be.
It’s important to remember that these calculators are just a guide and your lender will confirm the exact repayment amount.
What is the interest rate on commercial loans?
The rate you get from your lender will depend on both your business’s and the directors financial standing.
Variable rate
A variable rate means you are at the mercy of interest rate fluctuations. Interest rates rise, you pay more, and vice versa.
Fixed rate
This allows you to set an interest rate for a fixed period, meaning you can budget on exactly how much your loan repayments will be for the that period. This is a more stable method of repaying a business loan.
Contact your local business finance provider and find out we can do for your business.