A fixed payment business cash advance provides a business with a great way to obtain a quick capital that is based on the current state of the businesses revenue. With this funding type the lender estimates future revenue based on the present snapshot in time and then sets fixed payments over a set period of time.
The fee based interest you owe is front-loaded, so the majority of your initial payments goes toward interest + fees at the start of your term. With each additional payment, a higher percent of the payment is used to pay off the principal balance.
Before applying for a fixed payment business cash advance, utilize the Lendzero fixed payment business cash advance calculator to see your monthly payments. Insert the information below:
Use our fixed payment business cash advance calculator to calculate the payment of your fixed payment business cash advance by plugging in the numbers.
A two term may seem more appealing compared to a12 month term since your monthly payments will be less, but keep in mind that the longer your term the higher the factor rate. And that by extending the loan term means you’ll pay more in total interest/fees , which makes the financing more expensive overall.
For example, Tom’s Bakery wants a $100K fixed payment business cash advance for new equipment and repairs. Tom applies for a fixed payment business cash advance and receives approval for the $100K amount at a factor rate of 1.27 for a 12 month term.
By entering Tom’s $100K loan amount, selecting a 1.21 factor rate and 1-year repayment term into the fixed payment business cash advance calculator, we can see Tom would need to pay $504/per day or $2,520/ per week for 1 year.
The fixed payment business cash advance calculator will estimate the amount you’ll need to repay each month in both interest/fee and principal.
To be clear, definitions are below.