Business Loan Repayment Calculator
Welcome to our small business loan repayment calculator. Here you can view precisely how much you will need to repay each day, week or month based on the terms of your business loan. This can also be referred to as a business finance n calculator or commercial loan repayment calculator, and could even be used to estimate repayments on a personal loan, though it must be said we don’t deal with them. The tool can absolutely be used as an unsecured business loans calculator, just as it can be used for secured loans too. The default values are set to represent a realistic business financing solution in Australia. View the best secured and unsecured business loan companies here.
Business Finance Calculator
We hope this business loan repayment calculator has assisted you with your business financing needs. Please contact us through our about us page to suggest any improvements to our technical team. Please don’t use the information provided by our small business loan calculator to make any immediate decisions – make sure to double-check the figures beforehand. The information presented here is applicable for all types of business loans whether equipment loans or working capital loans, as well as loans generated through a broker, a company or an aggregator like Lend.com.au.
We recommend this article to learn more about borrowing – good vs bad business debt.
How to Use the Commercial Loan Repayment Calculator
Our business loan calculator is very easy to use, simply:
- Input the desired loan amount your business is seeking.
- Determine the loan term required and estimate the interest rates your business will be charged – small business loans are generally offered at interest rates of at least 5% onwards and are likely to be at least 10% for most small businesses.
- Choose the repayment frequency and the repayment type in the business finance calculator – remember, if you opt for an interest only loan you will need to pay off the principal in one lump sum at the end of the term.
- Be sure to check both the repayment chart and the amortization schedule for a full picture of your estimated loan repayments.
Factor Rate Calculator
Factor rates are used by some short-term Aussie business lenders. They’re more common when the term of the loan is under 12 months.
Factor rates are presented to the borrower in a decimal figure rather than a percentage. The key difference being that a factor rate is charged to the principal loan amount when the loan is taken out. For example, a 1.2 Factor Rate on a loan of $100,000 for 12 months would mean the borrower has to pay $20,000 in interest charges over the course of the loan. The “equivalent” interest rate would be 20% but as you repay your loan overtime the 20% interest rate continues to apply to a lower sum throughout the duration of the loan. As you can see from our small business loan repayment calculator above, a 20% interest rate on a 12 month business loan (providing you are keeping up with your repayments) doesn’t result in you paying $20,000 in interest charges over the course of the loan. Interest is actually lower than this.
If you are seeking an interest rate factor calculator to compare interest rates with factor rates then it should be noted comparing these two figures directly is not necessarily the best option. To get a true comparison, one should seek to understand the annual percentage rate (APR). The APR helps to compare rates over a consistent time period (one year) and takes into account compounding and all fees and charges associated with a small business loan, such as origination fees. The figure is expressed as a percentage – both factor rates and interest rates can be converted to an APR once all loan fees are included in the calculation.We don’t have our own factor rate calculator yet but our partner Lend.com.au has built their own factor rate calculator which can convert factor rates into an APR. Simply input some basic details about your desired business loan into the factor rate calculator and generate a response instantly.
Need a Transparent Lender for $5,000 to $250,000?
We have selected Get Capital as the most transparent lender in the Australian small business lending space. If you came here to calculate your monthly repayments on a business loans, then you could have done so also on GetCapital’s website where you have a calculator that enables you to understand exactly how much will you be due to pay each week and what’s the total interest you’ll be paying for your loan. Any lender willing to be THIS transparent deserves our applauded and support. Read more about Get Capital below:
What Are Your Business’ Chances of Getting Approved? View Below
Just as with our commercial loan repayment calculator, we hope our approval tool is of use and can get you started in your search for a small business loan. Again, if you have any feedback or would like to see other features added intp either our approval tool or business finance calculator, please get in touch. We’re keen to keep these tools relevant and useful for business owners so they can minimize their time comparing and choosing the most appropriate business loan for them.