Desk Cable Management
Business Loan

Business LoanIf you are shopping around for a small business loan, you will want to utilize a small business calculator in order to figure out which one to apply for. Below, we will be going over ways in which a small business loan calculator can help.

Here’s why:

1. More Information.

In order to figure out which small business loan to take on, you are going to want to have all of the information out in front of you. By using a calculator, you will be able to figure out the estimated payments you will have on the loan and whether or not it is a good option for your business. Without using a calculator, you will be unable to make a well-informed decision with regard to which loan you should choose. With a calculator, you will be able to figure out everything that you need to make a much better and more informed decision including the estimated monthly payment, the total payments for the loan, the total interest paid, and even the APR of the loan.

2. It’s Easy.

You will be able to find all kinds of different calculators that you can use for free on the web. Due to the resources readily available, no one should miss out on using a loan calculator because it is free to use and easy to understand. With this type of calculator, you will be able to get valuable information that you will be able to use to make a much more informed decision. Thus, it is something that you are not going to want to miss out on using.

3. Minimum Requirements.

You will be able to check to see what loans you might be eligible for without even having to apply first. You can check on different websites that offer calculators to see what business loans you can choose if you have excellent credit and even loans that you might be approved for if you have less than stellar credit. Being able to check to see which loans might be viable options for you without having to apply is a great thing. A lot of the loan calculators that you can use are going to allow you to input the kind of credit score that you have in order to figure out what APR you would get with the loan. This is going to give you a much more accurate estimate on what you would expect to pay with your loan.

Now that we have gone over some of the reasons you are going to want to consider using something like an online calculator to figure out your loan payments, we will be going over some of the key things that you will want to consider when it comes to figuring out if you want to get a loan.

Small Business Loan CalculatorShould You Apply For A Business Loan?

1. Why Do I Need Financing?

The main thing that you will want to ask yourself prior to applying for a small business loan would be why you are interested in financing. You want to figure out why you will be applying for financing because it will dramatically alter your decision making. You want to understand why you are applying for one because it will determine whether or not you should apply for one, how much you should be taking out, how fast you can pay it back, and whether there are better financing options that you should be considering.

2. Do I Have Good Enough Credit?

Another thing that you are going to want to consider prior to choosing to take out a business loan would be whether or not you have the kind of credit that is needed to make it a viable and suitable option for your business.

Overall, there are plenty of things that you must factor into your decision to take out a small business loan. By using a calculator, you will be able to really dig into the loan and figure out whether or not it makes sense for your business. Without having the kind of data that one of these calculators can give you, it would be more difficult to make a well-informed decision regarding taking on a loan and for how much.

Like most good things, small business loans don’t come handily. Compared to personal loans, they entail a higher risk for the lenders, resulting in more stringent eligibility requirements. With many businesses wanting to get a business loan, they may be uncertain whether they qualify for it.

If you are one of these enterprising owners looking to get an SBA loan, don’t fret! Here’s everything you need to know about the requirements for an SBA loan:

  1. Credit

Lenders are keen on looking at both personal and business credit history. However, since many small-business owners don’t have business credit, your personal credit score becomes more significant. Typically, you will need a credit score of at least 600 to qualify for an SBA loan.

  1. Cash Flow and Income

Cash flow is a representation of the status of your business, and it can make or break your application. Remember, lenders like to see that you have a healthy and steady stream of cash to ensure that you are capable of sustaining your loan payments. Moreover, lenders may also scrutinize your business expenses to know how profitable it is.

  1. Business Age

Unfortunately, around 20% of businesses go under within their initial year. It’s not surprising that most lenders and banks require a minimum business age for their borrowers.

For most loans, businesses must be from six months to two years old. However, be reminded that lenders don’t take into account how long the company has been registered with the government but instead on how long its bank accounts have been open.

  1. Industry

The kind of industry where your business falls can significantly affect the decision making for most lenders. Keep in mind that many lenders steer away from specific industries that are risky. Businesses considered to be socially unappealing or those that are seasonal and don’t have a steady cash flow are more likely to be rejected.

After getting approved for a business loan, it would be up to you to use it responsibly and reap the benefits it can give to your business. However, we understand that any business is a risk. So, whether things go your way or the other, don’t worry as you can always consult a Tampa business broker to help to achieve that win-win situation.

in so that the business can be sold fast. No investor would put money into something that has no future.

Bank Loan Illustration

Every small business owner faces the challenge of funding. Getting your hands on cash is close to impossible. Lenders are not very willing to infuse capital into a business without a guarantee that the business will be able to repay the loan. Bank loans have been the go-to source of capital for small businesses since time immemorial, but things are changing. It is becoming harder to get approved for a bank loan nowadays. Thanks to advancement in technology and internet use, small businesses now have other ways of accessing capital to expand their businesses. As long as you have basic knowledge about tech, it is easy to fundraise through online platforms. By now, most entrepreneurs  have heard about crowdfunding, as an alternative to bank loans. Let us compare bank loans with crowdfunding.

Bank Loan IllustrationBank Loans

Taking bank loans is a traditional approach whereby small businesses make use of financial institutions to request for capital. Some of the pros and cons of bank loan include the following.


Accessibility And Convenience

Bank loans are accessible since banks pool funds together, from customers’ deposits. They always have funds due to regular deposits by customers. Furthermore, It is convenient for you if you have been a frequent customer to that bank. Most banks offer loans to their loyal customers.

Non Profit Sharing

Banks only care about the interest they charge on the loan and repayment of the principal amount. They do not care about your profits or owning part of the company in exchange. This way, you can retain all the profits.


Strict Requirements

Securing a bank loan requires that the business offers collateral in exchange. Most small companies and startups do not have any assets to use as collateral. The issue of documentation also limits the uptake of bank loans. Most banks will ask that you provide documents such as the business plan, financial statements, a down payment which have to be approved. Approval may take up to 6 months, and this is a lot of precious time wasted, on the side of the business owner.

Repayment Schedule

Banks expect that the borrower adheres to the repayment schedule without fail. Defaulting may have a significant impact on the borrower’s future credibility and credit score. Taking a loan is risky if your business fails to produce good results, as it creates a massive burden on the business owner. Furthermore, banks tend to charge a hefty penalty for early repayment of the loan, and this is a loss to the borrower.

Bank loan vs. CrowdfundingCrowdfunding

Crowdfunding involves social lending such that a small business owner asks a number of people to each loan them some small amount of money, creating a large pool of capital in the end. It is done through online platforms.


Application Process

Application for crowdfunding is not complicated. The business owner is required to set up a campaign on a crowdfunding platform of their choice. They then market their product to the clientele. The aim is to raise sufficient funds from the public in exchange for some reward or equity. The campaign period is not as long as a bank loan application period. As soon as the business owner reaches or exceeds their fundraising goal, you are good to go. Furthermore, the campaign is a marketing strategy for your product. If many folks like what you are offering, the demand for your product or service increases, and this is a win on your side.

Little Financial Risk

Crowdfunding allows you to test the waters and see whether your idea is viable. Once you put it out there, you can get feedback from your customers, and this will guide you as to whether you should proceed with your business plans or not. It saves you a lot of money which you would have used to purchase inventory, materials and do research. You would rather fund a proven and viable business idea that customers approve, as opposed to funding an unproven business idea.


Creating a successful campaign requires a lot of time, money and effort to write compelling content, build a functional prototype and market the idea. The downside of this is that the campaign may still be unsuccessful after you have spent so much money. Furthermore, there is a high risk of someone stealing your idea if you have not patented it. Even if your idea is unique, someone may still try to copy some of the concepts to build a better idea.

 ~ Another way to get an infusion of capital is to consider merging with a larger company, though you don’t want to do that without professional help.  For Mergers and Acquisitions advice, please consider Tampa Business Broker, Dave DeCamella, who has over 9 years of experience as a business broker and over his career in commercial and residential real estate sold over $100 million of real property.

Small business can only expand and compete effectively with rival companies if they have a reliable source of funding. A small business owner has to weigh the pros and cons of bank loans and crowdfunding and make a decision on which route to take. You must be willing to risk something for you to get results in return.


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