Seeking financial support can be beneficial for many different types of businesses, whether you’re just starting out, or you’re an established company, ready to grow. If you’re looking for a loan to help improve your business, reaching out for financial help can work in your favour. Although the process may seem daunting, with a bit of knowledge and research, you can move through your application process with ease. Find out more about finance calculators, and factors to consider when applying for business finance below.
If you find yourself in need of cash due to an emergency, a
can be approved quickly and easily, meaning you will have the funds to pay for any unprecedented bills within days.
What is a business finance calculator?
A business finance calculator is a useful tool that can help you work out if the loan you’re choosing for your business is affordable by estimating your monthly payment and working out the amount of interest you will be paying throughout the loan term. They are a useful tool to give you a better idea of how much you can afford to borrow or if you need to look for a less expensive option.
How do they work?
There are lots of finance calculators available to use, but most of them will work on the same basis, for example, you’ll be required to input your loan amount, followed by the monthly payment that you are expected to pay back. You will also have to input the interest rate of your chosen loan, as well as the term that you’re going to be paying the loan back. The calculator will show you how long it will take to pay the loan off, and how much you will be paying each time to do this. There are a few factors to consider if you think your business would benefit from a bit of extra financial support that we will look at in more detail below.
Eligibility
Being approved for a business loan all depends on whether you are eligible. You must check your credit score when applying for the loan of your choice – this is one of the main deciding factors when lenders are looking at your application, so the higher the credit score, the more likely it is that you will be approved. It is a good way of making sure you’re not wasting your time. Applying for a loan that is not affordable for you, will only delay your application further and could end in a rejection. Make sure your credit score reflects the loan you’re applying for.
Compare
When deciding on business finance, it is essential that you are aware of the options available to you. You should research different types of business finance loans and find the best to suit your company. for example, if you’re a new business, you may benefit from a start-up loan, or if you’re operating with bad credit, a merchant cash advance may be the best option. You should compare types of loans, as well as lenders to ensure you’re getting a fair deal. Generally, banks and other traditional lenders have more requirements that need to be met, and the application process can take longer, whereas choosing an online lender may mean more flexibility when it comes to requirements, as well as fast approvals. You can compare reviews for online lenders to help you make your decision.
Documentation
When you’re applying for a business finance loan, you will be required to show various documents to your lender so they can decide on whether you can make your repayments. Documents such as bank statements are necessary so that your lender can learn more about your income and outgoings, tax returns, as well as any legal statements and proof of revenue. It is key that you meet the deadlines for these documents, not only to make the application process as smooth as possible but to show your lender that you can carry out tasks in a timely way, after all, you are trying to convince them that you can be trusted to make repayments on time!
Apply
Once you’ve decided on the loan that is right for you, you’ve collected all of your necessary documents and chosen a lender, it is time to submit your application. The above steps will help you get to the best position for approval so all that’s left to do is wait. Depending on the lender, approval times will vary, for example online, short-term loans or cash advances tend to be with you within a few days. A bank loan could take longer as it may require more thorough decision making.
