HOW MUCH WOULD A BUSINESS LOAN COST WITH US?
Easy. Our loans have a 2% fee annually and that’s it! A business will simply have to pay back how much the principal of their loan is and the interest that comes with it. Use our business loan repayments calculator in order to determine how much the interest is in the loan principal that your business would like to borrow.
ARE THERE ANY EXTRA FEES?
We do not have any extra fees, and we do not have any hidden charges.
Some other types of business loans and even credit cards from other banks or financial institutions have hidden charges, ours however does not. We do not even have any penalty for early repayment of the principal that you owe us, no direct debit fees, or even ongoing fees. What we charge are interest rates that are fixed and our annual fee. For us, your business would not incur any surprise expense that can be unwelcome and difficult for your business to pay off and can affect its cash flow.
WHAT ARE OTHER BUSINESS LOAN CHARGES AND FEES DOES MY BUSINESS HAVE TO EXPECT OR LOOK OUT FOR FROM OTHER BANKS OR FINANCIAL INSTITUTIONS?
There are several fees that your business should look out for when applying for business loans from banks or other financial institutions, here are some of them:
Application Fees: This fee is payment upfront upon application of the loan, and does not guarantee that your loan will be approved, which means that it is a fee that is payable whether or not the application for the business loan is approved or not.
Direct Debit Fees: These are fees where the bank or the financial institution would charge extra fees everytime the business makes a payment for the principal borrowed. While it may seem as if it is only a small fee, however, if all put together, can still add into a pretty big and hefty sum, hundreds to even thousands of dollars.
Early Repayment fees: A lot of businesses can be surprised to find that they already have the funds in order to make early repayments to the principal that they loaned. A lot of banks and financial institutions have a penalty for those that want to pay off their principal amounts early. A lot of banks and financial institutions in Australia actually charge penalty fees for paying early.
WHAT ARE SOME TERMS THAT ARE EQUATED TO USING A BUSINESS LOAN CALCULATOR?
Principal or loan amount – this is the amount of money that the business looks to borrow from the bank or the financial institution.
Interest Rate – interest rates are fixed or varied rates that the bank or financial institution will apply to the principal amount borrowed which the business must pay off.
Loan Term – a loan term is the amount of time that is usually agreed with by both pirates to make business loan repayments on the principal and the interest loaned to the business.
WHAT IS SIMPLE INTEREST RATE AND APR?
A simple interest rate is taken from the full loan amount and is calculated as if the full amount of the principal is paid in one repayment. Usually, a simple interest rate does not consider the business loan repayments that reduce the rate of the interest. Most of the business loans have scheduled payments that are regular which means that the principal amount is reduced, this in a way means that a simple interest rate can hide the real cost of the business loan.
The APR on the other hand is called the annual percentage rate and this is usually used to calculate the real cost of any business loan. In order to be transparent a bank or a financial institution must use APR for the calculation of the business loan, much like we have on our business loan calculator for Australia.
Make sure that whenever you see business loans calculator in Australia that they use APR or a simple interest rate in order to know a lot more about the business loan you are looking to apply for.
A FEW TIPS ON HOW TO HANDLE YOUR BUSINESS LOAN ONCE YOU ARE APPROVEDTIPS
Getting a business loan approved is a great thing for the business, however this is the start of the business owner making sure that the business is not behind on any of the payments that are needed to be paid.
The good news here is that other businesses have been successful with their own business loans and that means all there is to it for any business is to follow a few steps in order to relieve the pressure when it comes to paying off those finances.