If you are looking for a Business loan calculator, you probably running a small business and just got rejected from a big bank. Yes we know the pain and how banks treat to Small business owners. You might find there are so many Small business lenders out there. Most of them offer very fast service and ready to lend you money. However, did you ever think, how much you are paying for them?
Most of the small business lenders offer very smarter looking calculators on their websites. But, most of them hiding the real interest rate.
Let’s get an example and see, how much you are really paying.
Above example from Australias fastest growing private business loan lender.
According to this for a loan amount of $50,000, you will pay $233 daily
So the most important question is, How much interest you are paying? Most of these lenders never mentioned the interest rate. because, they don’t want you to get a heart attack. Let’s calculate.
Loan Amount = $50,000
Daily Payment = $233
How many payments = 264
Total repalyments (233 x 264) = $61,512
Total Intrest = $11,512
Intreat Rate = 11,512/50,000 x 100 = 23.02 %
Yes, you are paying 23% intrest rate for your business loan. this not include any application fee or any ongoing managment fees. most of small lenders have these fees.
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Can we trust private lenders and their Business Loan Calculators?
All of the theses lenders provide accurate data. However, they are hiding the interest rate from you. The best solution is when you call them directly ask for the interest rate. Mention them you have already used their Business loan calculator and you can see the interest rate. As a small business, you have to go for these lenders if you want to get a Business Loan. Most Australian banks, don’t have an apatite for small businesses and they will only look at your application, after looking at your house value.