Use our business loan calculator to help you find the best interest rate and repayment term for your situation.
In this comparison of small business loans we compare all the relevant factors and the way they can impact the amount of money you can borrow for your business.
Why would you want to calculate your borrowing capacity in the first place?
When looking into business loans it is important to understand the mechanics of how they work the interest rates, penalties, fees and any associated interest rates that may impact the final annual interest rate applied to your loan.
When comparing business lines it’s important to determine the difference between the advertised interest rate and the annual interest rate that you’ll be paying against the loan.
Keep in mind here that it is different between different products as well so dont get stuck agreeing to a term loan that is different to say a line of credit.
For example if you have a line of credit business loan it will be different to a term deposit business loan you might also incur different rates and all fees between the different types of business loan products.
Business finance is a great way to enable better business cash flow, often you’ll be asked to provide a reason for your business loan this could include things like growth and expansion marketing spend, buying inventory, buying business equipment and other products related to the services you offer.
The main thing that you need to consider when comparing different business loans is the eligibility criteria. This set of criteria will provide an accurate way for the lenders to assess your borrowing capacity as a small business while most lenders will require an ABN and six months of training as trading as a minimum.
While having a good quality credit score both as a business and an individual direct or stakeholder within that business is also important.
When you are the director or stakeholder within a business it is also important to consider the speed with which you pay back the loan the greater the loan term likely at the higher the fee involved in borrowing the money.
Many lenders let you apply online this is a great timesaver for small business as it allows you to get a quick snapshot in a very streamlined application process.
Understand Different Business Loan Repayments
Make sure you understand the repayments that will need to be made and the frequency of those repayments this could include weekly fortnightly or monthly repayments and this will also impact the amount of money you pay back because interest accrues daily
The easiest way to determine your borrowing power for a business loan is to use the simple interest calculation.
This will give you a rough idea of the amount of money you can expect to pay back over the inital amount over the lifetime of the loan.
The simplest way to apply for a business loan is with a simple online application that will asses your businesses situation against a defined credit criteria.
While the criteria can be different for every lender there is often a core set of requirements that they will not compromise on these include.
6 Months or more in business
Monthly turnover greater then $10,000 per month
Permanent resident or Australian citizen
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