Rather than wondering if a small business loan is a viable option, explore the reasons why applying for an online loan may be a good fit for your organization. Nowadays, there are numerous funding options tailor-made to suit your business operation. Lenders want you to be happy with the terms of the loan and endeavor to match the loan with your business needs.
Online business loans are becoming more mainstream because they’re a convenient way to do business. Plus, you don’t need to brave the elements (sleet, snow, or rain) since you can apply from the convenience of your home or office.
What Are Advantages to Applying For a Small Business Loan?
- Pre-qualification: If your business is newly organized, you probably haven’t built up a credit score in a range that lenders prefer. Online lenders have a pre-approval process built into the loan process so you know instantly whether you qualify. Many business owners with lower credit scores can still qualify for a loan.
- No Collateral Required: You won’t need to use equipment, vehicles, and other assets to qualify for a loan.
- Short-term Loans: On average, most online lenders offer repayment terms between 24-60 months. These shorter-term loans mean you aren’t paying interest for 10, 15, or 20 years saving you hundreds if not thousands of dollars.
- Internet Loans Are Quicker: Once you complete an online application, you work with a financial specialist who reviews your bank statements and other documentation. Compared to the paper trail required for a traditional bank loan, online loans require far less paperwork. In most situations, once the loan is approved, you receive funds within 4-10 days.
- No Penalty Fees: Most online lenders don’t charge a prepayment penalty if you decide to pay off your loan early.
With so many appealing reasons to apply for a small business loan, you may be wondering how much you can actually afford. A handy gadget called a business loan calculator lets you know in a few seconds your monthly payment and other pertinent details.
How Do You Use An Online Business Loan Calculator?
With the exception of a few countries, gone are the days of using calculating tools like the abacus to make calculations. Because we live in a digital world, there are helpful software programs at your fingertips to make the loan process user-friendly. You can use the Camino Financial online calculator by completing a few simple steps.
- Enter your desired loan amount in the blank provided and labeled “loan amount”. Take as much time as you want to experiment with lower and higher loan amounts to determine the most comfortable repayment terms for your business.
- Loan calculators require that you fill in the payment terms to calculate properly. Click on a drop-down menu and select your desired payment term. Again, experiment with the selections so you’re comfortable with the terms.
- The calculator also needs your desired monthly interest rate and includes a list ranging from, for example, 1% to 2.25%.
- Click on Calculate.
- Review the information provided that includes the closing fee, total interest paid over the life of the loan, your monthly payment amount, and the total cost of the loan.
- Experiment with different scenarios to determine the exact amount that suits your monthly budget in relation to other operating expenses.
By using the Camino Financial business loan calculator, you’ll be able to check the numbers and plan ahead before applying for an online business loan. With very little time expended using the online calculator and completing the application, the funding can be used to complete items on your business plan. Then you simply check them off and call them done.
Betsy also writes for Camino Financial, an online lender for small business loans. Within a 30-year period, Betsy worked as a Deputy Clerk for a school board and as Accounting Manager for the boat, construction, and legal industries.