LOAN AMOUNT:
$25k – $1MM
TERM:
1 to 5 Years
TIME TO FUNDING:
As few as 48 Hours
INTEREST RATE:
7-30%
About Term Loans
A long term loan which is paid back with regular payments over time, including interest. This type of loan is extremely flexible and can be used for almost any business purpose. A mortgage is the best known example of a term loan.
Calculator Information
The Finance Calculator calculates the type of repayment required, at the frequency requested, in respect of the loan parameters entered, namely amount, term and interest rate. The Product selected determines the default interest rate for personal loan product. The Finance Calculator also calculates the time saved to pay off the loan and the amount of interest saved based on an additional input from the customer. This is if repayments are increased by the entered amount of extra contribution per repayment period. This feature is only enabled for the products that support an extra repayment. The calculations are done at the repayment frequency entered, in respect of the original loan parameters entered, namely amount, annual interest rate and term in years.Calculator Assumptions
Length of Month
All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days interest dependent on the number of days in the particular month.Number of Weeks or Fortnights in a Year
One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.Rounding of Amount of Each Repayment
In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts. Note that the final repayment after the increase in repayment amount.Rounding of Time Saved
The time saved is presented as a number of years and months, fortnights or weeks, based on the repayment frequency selected. It assumes the potential partial last repayment when calculating the savings.Amount of Interest Saved
This amount can only be approximated from the amount of time saved and based on the original loan details.Calculator Disclaimer
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for the product. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.Business Loan Calculator - Estimate Your Monthly Payments with Cashifi
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Calculator Disclaimer
The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary. To find out actual repayment amounts, contact us. This calculation does not constitute a quote, loan approval, agreement or advice by My Finance. It does not take into account your personal or financial circumstances.
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- Purchase of inventory
- Purchase of shopfront or warehouse space for a retail or wholesale operation
- Vehicles and radios for a courier company
If you’re ready to start but still don’t know who to work with, turn to Cashifi!
We utilize our expansive network of vendors and a relationship-driven approach to get your business the funding it needs when you need it.
Frequently Asked Questions
- Minimum credit score: 620
- Minimum years in operation: 2
- Minimum revenue: $100,000 annually
Yes, the most common type of business loan, traditional term loans are what most people think of when they look for a loan. The bank or other financial institution loans you a lump sum of money, usually secured against collateral, and you pay that money back, principal and interest, with regular payments over a set time period. Interest can be fixed or variable, depending upon the amount of the loan and what the loan is for. The most common type of term loan, and the one we’re all familiar with, is a mortgage for a home or commercial property. Term loans work the same way.
While these loans usually come from a bank, there are other lending institutions available. Big Think keeps a comprehensive list of these lenders. Some lenders will only deal with certain types of businesses, while others focus on specific geographic areas.
If you qualify for this type of loan, you can use the money for anything your business needs, from equipment to expansion to covering short term cash shortages.
Benefits:
- Set payments at regular intervals
- Can be used for a wide variety of purposes
- Relatively low interest rate
- Long repayment schedule
Drawbacks:
- Lengthy application process
- May carry early payment penalty
- Variable interest rates may increase
