For young mothers with an entrepreneurial mind or for those active, go-getters, strongly-motivated moms who may have already invested in some kind of business but may today, find themselves in need of additional funding to expand its operations, hire new people or get a higher-producing equipment … know that a well-planned, well-crafted small business loan is always a big help.
Sure, if you are new to making loans, this could sometimes be intimidating or even cause some anxiety for some businesswomen. It will, after all, mean a strong commitment. But loans are made every day. No need to fret or worry. Just about everybody who’s in business, big or small takes out a loan.
The important thing is to plan, map it out well and make sure you do not miss out on any of the crucial elements that will help give you a realistic picture. Tips that should help:
Try to be as specific as you can on what you need, how much you need and what you feel you can afford to pay back monthly. Whether you’re planning on installing new equipment, hiring additional people or moving out to what you feel could be a more productive business location, do a little homework and work out the numbers. Get cost estimates on that new machine. Check out the prevailing wage laws in your locality. Get advanced information on rental costs of that promising site, or project your inventory costs. In other words, much as we hated math and barely made the passing grade in high school, we’ll have to apply a little of it in this project. No big deal. Simple addition and subtraction, a bit of multiplication and division should do the trick.
Once you have gotten the figure on the loan amount, consider adding 5-10% – This is to simply cover those small unforeseen expenses that generally crop up during business start-ups or expansion. No matter how diligent we are, there will be items we might not be aware of or costs might have suddenly increased.
So, how much is this small business loan going to cost you? Check out this useful tool: business loan calculator courtesy of Camino Financial. It will instantly give you the answer. How do you use it? Simple. There are a few blank spaces that you will just need to fill up. It’s easier than changing your baby’s diaper and faster than cooking your favorite Paella Negra.
Here’s how :
Enter your desired loan amount
Click on the number of months you would prefer to pay back the loan (choose from a selection of 24-60 months)
Select the 1% or 2.1% monthly interest rate
Click “Calculate” and Voila! You are in business!
The information that will come out will show you how much your monthly payment will be and the total interest you shall have paid at the end of the loan’s term.
Review this information. Should for one reason or another you feel the numbers are not viable given your present circumstances, you may enter a revised set of data for other options that will best suit your purpose. Simply click “Reset Calculator”. You can do this till you find the right, figures you would feel comfortable with.
So go with what the management gurus are saying … “Time is money.” Check out this business loan calculator today to help you determine what a small business loan will cost you and rev up your business. What you’re sure to find amazing is that the cost will look like something you would be glad to pay.
Suzanne Llanera is a writer for Camino Financial, an online lender for small business loans. Suzanne is also a professor of Management, Marketing and Advertising in one of the most prestigious Colleges in the Philippines. She has experience working with top international advertising agencies where she managed the accounts of a multinational bank and a digital, telecommunications company. Suzanne advocates keen creativity in the utilization of marketing and advertising budgets, especially for fledgling businesses.