Set Realistic Terms With A Small Business Loan Calculator

2007-05-02 10:04:19

( Business )



When you apply for small business start up loans, one of the documentation requirements is the proposed structure of the loan. The structure of a loan includes specifications on the terms and conditions of your loan transaction with the small business lenders. By stating your loan structure preference at the start of the negotiations, you take the initiative in the discussions and set the tone. This increases your chances to get a better deal, as the lender gets a favorable impression of your business approach, directly addressing the issues instead of waiting for the other party to set the terms.

It is certainly the lender's privilege to set the loan terms. However, your proposition of terms for the loan communicates an important signal to the lender that ultimately influences the psychological environment during the small business loans negotiations. Thus, you have to make sure that you have a well-prepared loan structure which should include the following components: loan amount, loan term and interest rate.

You must specify the exact amount of the loan that you want, and get ready with your supporting documents because you will have to defend this. Your loan structure must define the repayment period of the loan, appropriate to your cash flow. Depending on the type of business you have, you must state a realistic interest rate applicable to that industry.

Using the above components of the loan structure, you can calculate the loan payment using a small business loan calculator. Before you negotiate with the lender, it is essential that you get an accurate determination of the loan payment from your small business loan calculator so you anticipate the acceptable amount that the lender will find acceptable. You may want to invest in a small business loan calculator, or you can use an online small business loan calculator to accomplish this computation task.


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