Business Loan Calculator
What is a Business Loan Calculator?
The Business Loan Calculator is designed not only for the new entrepreneur, but also for established businesses that may have challenges of cash flow for the progression of the business. Based on the information provided, the calculator will not only help determine the loan amount a business can qualify for, but will also safe allot of valuable time usually spend on application processes.
There are many reasons a business requires a boost of finance to grow. Some of these reasons may include:
- Starting a business
- Business operating finances
- Venture capital
- Boosting working capital
- Finance for tenders
- Machinery or equipment replacement or investments
- Relocating or improving business facilities
This list could be endless but is, however, very unique to the needs of your business. This makes the Business Loan Calculator a most valuable tool in your careful planning of your business and enterprise.
How It Works
The Business Loan Calculator is a straight forward online tool that is easy to use and takes only a few seconds to complete. Information that is required includes:
- Income information:
- Date of your trading results
- Nett profit (before tax)
- Add backs:
- Interest amount(s)
- Depreciation charges
- Security value
- Estimated fair market value of your:
- Commercial property
- Residential property
- Your total existing borrowings
It could even be daunting and overwhelming. This is where the Business Loan Calculator comes into its own.
Important Factors to Consider
Estimations
It is important to understand the calculator can help determine your business’ potential borrowing capacity. The results are accurate but subject to the information provided and therefore the calculator should only be used for estimation purposes. It therefore does not serve as a quote or a pre-qualification for a loan.
Responsible lending practices
Bankwest adheres to responsible lending practices and has specific systems in place to ensure that business loans can be afforded. The calculator are therefore also utilised to provide snapshot of the loan amount you, as the client, can afford before any official applications are made.
EBITDA
An approved loan amount is subject to your company’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation). The calculator therefore considers the following:
- Net profit before tax
- Gross interest paid on current loans
- Depreciation
EBITDA is a financial return and usually part of a company’s annual reports.
Borrowing factors
There are 2 specific EBITDA factors influencing the loan amount.
- Debt serviceability
- Security valuation
Debt Serviceability
Relating to responsible lending practices, this is the calculation of the instalment repayments your business can afford.
Security Valuation
Financial institutions very often require collateral as security before a loan is considered. Through experience, however, we have determined that a sale of an asset and the net proceeds it delivers, hardly ever equals its market value. In order to help eliminate this risk in such unfortunate events, Bankwest ensures that a buffer exists between the approved loan and the value of the asset offered as collateral.
Conclusion
The Business Loan Calculator is a magnificent tool which you can use time and again 24/7 in the comfort of your home or office. When it comes down to the crunch, Bankwest will to lend out money responsibly to ensure that your business will grow effectively and efficiently.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
Related posts:
Ask A Question