Debt

Are Lenders Being Transparent with You?

If you’ve made up your mind to take a small business loan, the decision could not have been easy. It never is for businessmen and entrepreneurs. There is just too much at stake and invested in your business venture: the idea of a loan could feel like a ton of bricks on your shoulders. This becomes particularly true when you’ve got doubts lurking in your mind. Are the numbers being proposed by my lender’s the right ones that will best serve my purpose? …Isn’t the interest rate too high? … Won’t the terms and conditions put me in a tight corner where I can’t have enough elbow room to maneuver and move about? Do these loan-lending guys have my best interests in mind and are they truly on the level?

These are good, reasonably sound questions. Don’t be too hard on yourself if you’re feeling anxious about them. It’s your money that’s going to be involved after all. The important thing is to get rid of your doubts and have a simple, crystal clear idea of what the loan figures are all about. You can achieve this state of confidence, by using a small business loan calculator to understand all the costs of the loan.

The Small Business Loan Calculator

Precisely because a lot of enterprising people who are into some kind of small business or enterprise generally get bogged down by the mention of a loan or debt numbers, some imaginative, caring executives designed and introduced this small business loan calculator in the industry. It allows borrowers to get a good picture of the loan figures they’ll have to be dealing with – figures that are nearly precise. And the amazing thing about it is … you could do this in less than five minutes, a whole lot faster and more convenient than driving up to your lending bank’s office.

With just a few clicks of your computer mouse, you’ll get to know the near-exact numbers of how much you will have to pay monthly, what the monthly interest is (depending on your credit standing) what the total cost of the loan will look like at the lending term’s end and some minor costs (if any) such as closing or documentation fees.

Here’s how it works: In the blank spaces provided enter the following

  • Your desired loan amount
  • Your preferred number of payments (simply click from a set of 24-60 monthly payments)
  • 1% or 2.1% monthly interest rate (Just select either for purposes of determining your loan cost. Know though that for most borrowers, these are the going rates, but as you would most probably be aware of – the prevailing principle of “The higher the credit standing, the lower the interest rate” usually applies on all types of loans.
  • Click Calculate

Review the Results

The information that comes out will tell you your monthly payments, your loan’s total cost, and some related minor data. Review this payment scenario carefully. Pore over your monthlies and the total sum carefully and determine if, given your unique situation, they’re aligned with your expectations and capacity to pay. Otherwise, click Reset Calculator and run a new set of entries. You can reset this till you find the numbers that you feel are right for you.

Your Peace Of Mind

Take comfort in the fact that smart businessmen consider small business loans, especially if taken for purposes of expansion and growth, as a good investment. In addition, should you have continuing doubts if your lender is taking you for a ride, make full use of the small business loan calculator. Get the right numbers and have a good night’s sleep.

Suzanne Llanera

Suzanne Llanera is a writer for Camino Financial, an online lender for small business loans. Suzanne is also a professor of Management, Marketing and Advertising in one of the most prestigious Colleges in the Philippines. She has experience working with top international advertising agencies where she managed the accounts of a multinational bank and a digital, telecommunications company. Suzanne advocates keen creativity in the utilization of marketing and advertising budgets, especially for fledgling businesses.

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