At Funding Bay, we make calculating the cost of your business loan easier than ever.
Our free, easy-to-use business loan calculator provides accurate pricing structures to help you decide just how much loan you can afford.
Our team of financial experts understands the needs of today’s small to medium and enterprise level businesses and want to help you and your business become successful and sustainable in today’s post pandemic corporate environment.
The next step is to match with a lender and start comparing business funding options.
With an estimate of your monthly payments in hand, you can more accurately and more effectively budget for payments or ensure that you can afford the business loan.
Since the calculator shows the total interest paid over the life of the loan, you’ll have a clear picture of the loan’s overall cost, helping you make informed financial decisions.
Using the calculator, you could compare different loan scenarios by adjusting the loan amount, interest rate, and term length. This allows you to see how changes in these variables affect your monthly payments and total interest.
Comparing various loan options using our calculator will allow you to identify which terms offer the most favourable rates and repayment schedules for your business needs.
In today’s competitive business world, success often comes down to which businesses can take advantage of the opportunities before them. This is typically relative to the amount of capital a business has to work with. Expanding your business, adding new staff, designing a new product line, or just paying off business debt costs money. Without enough capital, a business can become stagnant, the first phase of decline.
Regardless of your size or business type, you will need additional funding at some point. The most efficient way to do this is through a small business loan. Decide on the amount you need and how much of a loan you can afford, and qualify, and you could have working capital the very next day.
This can boost operations and put your business in a much more competitive position. A number of financial products can help a business raise funding including, revolving credit facility, merchant cash advance, selective invoice finance, term loans and the list goes on.
Check your business credit score and address any discrepancies. A strong credit score can improve your chances of approval and being offered better loan terms.
Develop a detailed business plan outlining your business goals, including market analysis and financial projections. This demonstrates to lenders that you have a clear strategy for using the loan and repaying it.
Using the Funding Bay business loan calculator to understand your loan options takes less time than you might think. In seconds, you will know what your average monthly interest payments will be, as well as any additional monthly costs typically associated with a business loan.
Input your loan amount, the annual interest rate and term length (in months) that you would like and let the Funding Bay business loan calculator do the rest. Before you know it, you will have It really is that simple!
Eligibility criteria for business loans differ from financing company to financing company. When deciding your business loan eligibility, most financing companies will take into consideration your:
As with any important business transaction, having the right information beforehand can help expedite the process. When applying for a business loan, have the following documents available:
Secured loans require the borrower to pledge an asset as collateral.
This asset could be a property, a vehicle, or a savings account. It provides security for the lender, reducing their risk. Because of this reduced risk, secured loans typically offer lower interest rates compared to unsecured loans.
They also generally allow for higher borrowing limits, making them suitable for large purchases like real estate or significant business investments.
If the borrower defaults on the loan, the lender has the legal right to seize the collateral and sell it to recover the loan amount.
Unsecured loans do not require any collateral. Instead, these loans are granted based on the borrower’s creditworthiness and ability to repay. They may also include a Personal Guarantee (PG) from the director of the company, who is then liable on default.
Due to the increased risk for lenders, unsecured loans come with higher interest rates compared to secured loans. They offer lower borrowing limits too.
Lenders heavily rely on the borrower’s credit score and financial history to determine their eligibility and the relevant interest rates.
A revolving credit facility is a flexible loan arrangement where a lender extends a specified amount of credit that can be used, repaid, and used again. The lender provides ongoing access to funds as needed, with interest only paid on the amount borrowed.
These are best used for managing cash flow fluctuations, covering short-term expenses, or handling unexpected costs.
Invoice financing allows businesses to sell their invoices to a lender at a discount to receive immediate cash. It improves cash flow by unlocking funds tied up in unpaid invoices.
It is best used by businesses with long payment cycles that need to maintain liquidity.
A merchant cash advance provides a lump sum of capital in exchange for a percentage of future sales. This option allows access to funds without the need for extensive credit checks.
Businesses with strong daily card sales needing quick capital, such as retail stores and restaurants, are the ideal beneficiaries of a merchant cash advance.
Funding Bay Limited is an FCA authorised and regulated finance broker, Reg No. 950847. Funding Bay Limited may receive payment(s) or other benefit from the finance provider if you decide to enter into an agreement with them.
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