Being the owner of a small business can be one of the most fulfilling roles in life. However, it definitely comes with its challenges.
In today’s vigorously competitive market, one of the most important actions for your small business is to stay ahead of the game. You constantly need to think of new opportunities to grow your business and face the dynamicity of the market.
This business growth process comes with its own challenges, a major one is to find the capital you need to implement your ideas for expansion.
Whether you decide to expand through entering new markets, upgrading equipment or inventory; financial investments are essential for the implementation process.
So, how do you get the needed capital to go through with your plans?
Your best bet is to apply for a business loan. Let’s say your business operates out of Florida for example, you would need to look around for different Florida small business loans to ensure you choose one that suits your needs. If you operate out of London, you would need to do something similar.
Your best bet is to apply for a business loan.
However, before applying for your bpi business loan, or whatever business loan you choose, you need to gather as much information as you can, after all, it’s crucial for your financial books to go with the best option. You need to make sure that your business does not stumble in future risks that can easily be avoided by making an informed decision.
Now, this very crucial information can be summed up in asking and answering one single question;
How much money does a business loan cost?
It may seem like this question has an obvious answer. Well, if you make correct calculations, it does.
In order to ensure that your calculations are correct and avoid risks that might affect your business, the best thing to do is to automate those calculations by using a business loan calculator by Camino Financial.
The Facts of Business Loan Calculator
Through a business loan calculator, you will get precise and accurate answers to these questions:
How much will you pay in interest during the life of the loan?
Are there any other costs besides the interest? How much will they sum up?
How much will be your monthly payment?
You also need to make sure that:
Monthly payments do not exceed 80% of your monthly net profit.
The total cost of the loan does not exceed the total return expected after the investment.
Effects of Calculated Small Business Loans
Here you will find a real-life example of how the owner of a small business expanded by taking out a small business loan through an informed decision.
Business: Antojitos Colombianos
Type of business: Restaurant serving authentic Colombian food in San Diego
Javier Rodriguez opened his Colombian restaurant in San Diego in 2011. Six years later, Antojitos Colombianos has grown into an essential neighborhood spot for authentic Colombian food and good times with friends.
With many years of prior success in the industry and two Small Business of the Year awards from California State Assembly member Lorena Gonzalez, Javier is no stranger to success. He found he needed a little help to keep Antojitos Colombianos on top for his customers.
“I needed to buy merchandise from Colombia, which is very expensive,” he said. “I needed new equipment too.”
Javier followed a tip from a friend and fellow business owner about taking out a small business loan. When Javier used a business loan calculator to study the idea, he knew it was the right decision.
Javier took a $10,000 loan in September 2016. The fast, easy-to-get, and affordable capital made a difference in Javier’s business right away. He was able to buy the new equipment and inventory his restaurant needed.
Many other entrepreneurs like Javier prove that getting a small business loan can reap many benefits for the growth of your business. But it’s important to know the real cost of getting that loan, its return on investment, and if you will be able to comfortably make the monthly payments.
An informed decision is always the best way to go when it comes to finances.
So is it easy to calculate the cost of a loan? Yes! It is easy and anyone can do it by using a business loan calculator.
Remember, it is always preferred that you know all the costs that a loan involves before even committing to one.
Have you thought of getting a loan? Have you ever heard of business loan calculators? Now is your moment, take the decision to grow your business today.