How to Use Small Business Lending Calculators?
For small business owners, understanding the ins and outs of commercial lending can be a daunting task. One way to help make the process easier is to use various calculators available online. This article will highlight three different small business lending calculators that can help you make informed decisions when looking for financing.
SBA 7a vs 504 Comparison Calculator: The first calculator we’ll look at is the SBA 7a vs 504 Comparison Calculator. This calculator allows you to compare two different loan types offered through the Small Business Administration (SBA). The SBA 7a loan is a general loan program that provides businesses with long-term financing, whereas the SBA 504 loan is specifically designed for businesses that are looking to purchase real estate or equipment. By inputting details such as loan amount, desired repayment period and type of equipment, this calculator will compare both loans side-by-side so you can choose which one is right for your business.
Another helpful calculator is the Equipment Loan Calculator. This calculator helps you determine how much money you need in order to finance an equipment purchase. Simply enter in your desired monthly payment, down payment percentage and length of loan term and it will calculate exactly how much money you need in order to cover the cost of purchasing new equipment.
Finally, there’s the Factoring Calculator which helps you understand how much money a factoring company will charge for their services. A factoring company lends money to businesses by purchasing their outstanding invoices at a discounted rate. By inputting information such as invoice total, discount rate and length of contract, this calculator will provide an estimate on how much money a factoring company will charge for their services so you can decide if it’s worth it or not.
Small business lending calculators can be incredibly helpful tools for small business owners looking to finance an equipment purchase or take out a loan from a lender or factoring company. These calculators allow business owners to compare different options side-by-side so they can make informed decisions about which option works best for them and their budget. Using these calculators should give small business owners greater peace of mind when it comes time to making important financial decisions regarding their business operations.
