The overall cost of a term loan will vary depending on how high or low of a risk the lender deems your business. For example, a business with a higher risk profile (to the lender) will likely be required to take on a shorter term and pay a higher interest rate and fees. Alternatively, a business with a lower risk profile (to the lender) will allow for longer terms, and pay lower interest rates and fees. Each lender will have its own risk model, which is why it’s very important for a business to apply with multiple lenders and then compare offers.
The good news is that all lenders who offer term loans calculate the payments in the exact same way, which makes this an easy program to compare. For you to calculate your term loan payment, you’ll need to know the term of your expected loan (number of periods), the interest rate of your loan and your loan amount. With that information, your business term loan payment can be calculated manually…but that is too much work.
Check out our term loan calculator where you can estimate your potential loan payments.
