A guide to helping you understand how business loans are calculated
Find the ideal finance with our business loan calculator
If you are looking to find the ideal finance for your company, our business loan calculator is the perfect tool. Our finance finder tool will calculate loans from our panel of over 30 lenders, so you have access to the lowest rates available and our range of exclusive offers.
With so many business loans available, we understand how difficult and time-consuming it can be to search for the most competitive and flexible terms. Through our small business loan calculator, we can help businesses of all sizes find finance which meets their specific requirements.
How our business loan calculator works
It is our aim to help businesses find finance options which perfectly match their unique requirements. We know that each business is different, so finding the best business loan will depend on a variety of factors.
Our finance finder is designed to help us get to know your business, so that we can calculate accurately what will be the best finance product for your business. In addition to providing useful information within our business loan repayment calculator.
The series of questions within our business loan calculator will help us get to know your current financial situation, how much you need to borrow and what you need the funds for. By gaining an in-depth knowledge of your business through the commercial bank loan calculator, we can determine which will be the best loans for you.
Instead of scouring the available loans to find a competitive and flexible option, we will calculate which loans are most relevant to save you time and effort. With the most comprehensive list of lenders available online, our business finance calculator guarantees to provide you with the best loans available.
What details will the business loan calculator ask for?
The business loans calculator is designed to be fast and simple, with no obligation to take out a loan through any of our lenders. The first stage will ask you how much you need to borrow, what it is for and how long you need to repay the loan.
The second step will help us to build an understanding of your business finances each month. We will ask how long you have been trading for and what your average monthly turnover is.
To help us build a picture of your income patterns, we will ask for the amount of income you receive through a card machine and whether your customers use trade accounts. This information will provide us with the information we need to assess your current level of income and trading patterns, so we can use our business loan payment calculator to see which loans may suit your needs.
Finally, we will ask for your business and personal details, including the legal status of the business, its name and company number. Within a few seconds our business loan interest rate calculator will present you with the funding options which align to your unique requirements.
How to apply for finance through the business loan calculator
To make it as easy as possible to compare the loans available to you, the results are listed with a match score percentage which will show how closely the finance matches your specific needs. We also list the approval time and the level of expected costs, so that you can instantly see which loan is most suitable.
At this point it is possible to narrow down your options by answering some more detailed questions such as which sector you operate in, whether you own any assets and if you have financial accounts ready to provide.
By providing as much detail as possible, the finance finder will be able to calculate your eligibility for each possible option. This pre-qualification stage will give you an idea of the loan amount and terms you can expect from the potential lenders.
Once you have chosen an option you will be taken through the application process, which is designed to take just 2 or 3 minutes. The information you have already provided will be passed to the lender, so you will not need to re-enter your details.
Once the lender processes your application, they are likely to ask for evidence of your finances and a business plan. This information will be used to calculate the level of risk your business poses and whether you meet their exact lending criteria. If the finance is approved, funds can be available within just 24 hours. Although, you can improve the speed of this process by having your documentation ready.
The final stage will involve reviewing and signing the documents. It is important to ensure that you understand every aspect of the terms and conditions before you sign and return any documents. There may be unexpected charges, terms, or clauses which could catch you by surprise during the loan arrangement. If you are unsure about any of the details, ask for clarification or speak to a third-party professional.
What forms of finance are included in the business loan calculator?
Our lenders specialise in providing loans starting from £1,000 to a maximum amount of £20,000,000. The repayments periods are also very flexible, with smaller loans repaid in weeks or months and larger loans repaid over several years.
By working with a wide range of lenders we can provide many forms of finance to assist with cashflow issues, asset purchases, property, fixed term finance and business turnarounds.
The price comparison tool currently includes eight possible financing options, including both short-term and long-term finance solutions. If you are looking to purchase any kind of assets for your business; asset finance, short-term loans and credit cards can help you spread the cost of the investment across affordable payments.
We can also provide larger amounts over longer periods such as bridging finance, commercial mortgages and secured business loans.
How to improve your chances of being accepted for a loan
As there are so many lending options available, the eligibility criteria can vary significantly between the lenders. In general, you will be able to improve your chances of being accepted if you help the lender build up a clear picture of your business and its ability to repay the loan.
This can be achieved by providing a detailed business plan, which explains your plans for the future and how the loan will be used. By clearly demonstrating that you will be able to easily afford the repayments, the lender will have more faith in your commitment to repaying the finance.
The interest rates and fees can vary significantly between the variety of loan options. Your financial position, credit rating and business plan will be deciding factors in calculating what the risk is when lending to your business.
Generally, the short-term, high risk forms of finance will cost more. However, it may be possible to reduce the interest rate by providing the lender with a personal guarantee or security, in the form of assets to the value of the loan amount.
If you would like to find out more about our business loan calculator or the forms of finance which we have available, please contact our team today. We specialise in helping businesses access the finance they need, quickly and easily, so are always on hand to answer your questions and assist with the application process.
In fact, by using our business loan calculator you are likely to benefit from lower interest rates than applying directly to the lender.
If you need some free advice our business experts would be happy to help
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