Are you looking to take out a business loan? Do you want to have a ballpark of our debt service coverage? If so, using a business loan calculator can you help plan for the future of your business.
Business loans can be used to expand your trade to a new location, upgrade your facilities, or invest in other assets to increase the overall returns of your business. That’s why it is important to know the benefits and risks of taking out your loans. Would it be good for your business or are the risks not worth it?
Business loan calculator can help you if you want answers to the following questions:
- Which of my loan options is more suitable for my financial needs?
- How much will I pay for my business loan? It is important to understand the financial commitment of borrowing money before you sign the loan contract. Otherwise, you may be taking out an amount you can afford to pay for.
- What are my options? A loan calculator can help you compare your business loan options. If you can’t afford the payment terms, then you can think of other ways to make ends meet.
- Is my loan decision correct? It can educate you about the basics of a business loan, from monthly repayments to the total interest payable.
Australian Lending Centre has 4 types of loan calculators:
- Loan comparison calculator: You can use the loan comparison calculator to compute the repayments you may have to make between two different types of loans. You can see how much you will be able to save if you choose one over the other.
- Loan repayment calculator: How much will you repay every month?
- Budget planner calculator: It helps you work on your budget.
- Extra repayment calculator: It can show you how much you can save by making extra payments to your loans.
Second, while the calculation may not be accurate having a ballpark of your future financial obligations can help you plan your repayment and assess your capacity to do so.
For example, the budget calculator can help you come up with a workable budget to save more money, pay off more debts and invest more on assets to increase your returns on investments.
Businesses, even with the same size may not get the same amount of loan. One of the reasons for the discrepancy of the amount of loan is credit score. Lenders are not so excited to work with people who show signs of financial struggle because of the risk of not being paid back.
Third, it can help you decide if you need such lending product to build your business. If the interest rates and the lending structure do not match your capacity to pay; and other terms would be putting burden on your business, than liberate it, you can move on to another option.
Australian Lending Centre offers quick and easy-approval business loans to help you fund your business. Use our business loan calculators to help you make then right decision.
Call us and we will do our best to assist you!