The working capital loan calculator available on our website is a tool that allows you to calculate the monthly installment, taking into account the total loan amount and repayment period. Thanks to our calculator you will also learn what the interest rate and APRC offered by individual banks are.
Who most often uses the working capital loan calculator?
The working capital loan calculator will allow you to familiarize yourself with the parameters of this financial product in individual banks, thanks to it you will learn, among others amount of monthly installment or repayment period. Such support is a good solution if your company loses liquidity. It covers all current business costs. Thanks to it, even in the absence of cash and temporary problems, your company can maintain business continuity. Most often, banks grant such loans for short periods, but there are also offers for a longer repayment period.
When is it worth?
It’s best to decide on a working capital loan if your business is experienced and the lack of liquidity is temporary. The amount of financing offered by banks as part of this type of support is related to the company’s condition as well as the amount of possible collateral. A positive bank decision depends on your company’s creditworthiness, as well as its good credit history. This type of financing can be granted both as part of a current account, which can facilitate and speed up all formalities, as well as on a separate account, in any banking institution.
This solution is especially recommended for larger companies with long experience, because the maximum amount of this type of financing provided by the bank is determined on the basis of the company’s condition, as well as the amount of possible collateral that it can offer. Despite this, more and more banking institutions have revolving loans in their offer for smaller, new companies and start-ups, which is a form of facilitating their entry into the market and achieving success in their industry. In this case, the maximum loan amount depends usually on the industry in which the enterprise operates, as well as the demand for working capital and the period of time that is required for the implementation of a given financed project.
The working capital loan granted under the current account is based on the granting of a specific credit limit within the account. When an enterprise loses financial liquidity at a given moment, it will still be possible to make transactions within the limit granted, and the current account will show a negative balance. In this case, all inflows to the bank account will cover the negative balance first.
Find out the interest rates, disadvantages and advantages thanks to the working capital loan calculator
The revolving loan calculator will allow you to make an initial decision on the application and recalculate whether this financial product is suitable for your business at any given time. The main advantage of this form of financing is flexibility. You can easily adjust the parameters to the needs of your company. Most often you can regulate the duration of the contract, you can apply for a one-time withdrawal, tranche or limit in your bank account that will provide your company with financial liquidity, even in times of crisis. This is a good solution if you need extra cash for your current expenses. The contract is usually concluded for a short period, so you can pay off the debt quickly.
Get help from a specialist
Banks that grant working capital loans usually require that they have an account with them, which can be opened when submitting the relevant applications. This method of financing is dedicated to enterprises that enjoy a stable financial situation. The funds raised cannot be used to pay overdue liabilities of the company. Very often, banks refuse to grant them to new enterprises. The most common condition is at least 12 months of running a business. Most revolving loans also have fairly high costs, collateral, and an interest rate of over 8%. Therefore, it is worth using the help of our specialist, who, thanks to the experience and many years of cooperation with banking institutions, will be able to negotiate for you individual, favorable conditions of the contract with the selected bank.
Is it worth deciding to secure a working capital loan?
It is worth paying attention to the issue of securing the working capital loan. Many banks require collateral for this form of financing. Collateral increases the cost of the loan and extends its repayment time. Without a doubt, however, security has many advantages. It is a significant relief in the event that the company will not be able to pay the liability. In addition, banks make secured loans much easier and more willing, especially for small businesses. Real estate is the most popular collateral.
The working capital loan calculator is the first tool to use when considering this form of financing. It can only be used for current business expenses. You can’t use it to start a business or pay overdue liabilities. This type of financing method is usually granted for a maximum of three years, but if you regularly repay the loan, you can receive it repeatedly.