Many businesses don’t have the capital they need to finance their operations. Startups and other businesses can seek business loans to solve this problem and continue operating efficiently. The process of getting a business loan is only one part. It is important to determine if the terms of the business loan you are receiving are the best type of financing for you.
You don’t want to be a business owner and end up paying high interest on top of the principal amount. Use business loan calculators to quickly calculate the amount you will have to repay when you receive a loan offer. This helps you avoid taking out loans that could hurt your business. The Return on Investment (ROI) for the business loan can be calculated using a business loan calculator.
In this article, we will explain the process of business loans, types of providers, and how to choose the best funding option for Amazon Sellers.
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What is the right option for your Amazon business financing?
Benefits of using non-traditional lenders
Amazon Lending, fintech lenders, and Amazon Lending are some examples of non-traditional lenders. They’re also more likely to get to know your unique business needs. The loan should be based on your account health and sales performance.
Advantages include
- Receive your funds as soon as possible
- Some fintech lenders won’t check your personal credit score.
- Your online sales history is what will determine your approval
- These lenders offer flexible financing terms and more options than banks.
- It is not necessary to have a brick and mortar physical location
- These lenders are for e-commerce companies
You’ll be able to get approved faster through a non-traditional lender than if you went through a traditional bank.
Why you shouldn’t go to the bank to get a loan
You won’t be able to meet the requirements of banks if you have only been selling online for one year. Many third-party Amazon sellers lack the traditional business plan, tax history, or collateral that banks will require.
- Many documents are required by banks for e-commerce businesses that are newer than the one you have. Two years of business credit history, bank statements and tax documents.
- Banks are often reluctant to lend small amounts below $100,000.
- Traditional banks have been slow to grasp e-commerce.
- Approval for any type of financing may take up to a few weeks
There are many different business loan calculators on the market. This article will discuss the most popular business loan calculators.
1. Bankrate
The Best Business Loan Calculator for Small- and Large-Scale Estimates
Bankrate is a personal finance platform that provides you, and more than 100 million+ customers, with many useful tools and resources. These include calculators and product comparison tools that will help you make better financial decisions.
The platform’s online business loan calculator is simple to use. It will help you map out your financial risk strategy from start to end.
You can instantly get an estimate of the cost of your small or commercial loan by simply entering the details. You can input the following details into the calculator: the loan amount, the length of the loan term (which could be in years or months), as well as the annual interest rate.
Bankrate’s calculator gives you detailed results that include your monthly payments. You can also choose your repayment plan.
Bankrate provides detailed information that will help you to calculate the total loan amount. The total amount of interest that you will eventually pay on your principal loan amount is known to you. You can also choose to include additional payments in your loan agreement, aside from the three main details.
You will also find information about how to reduce your total interest rate and accelerate your loan repayments by making a few extra monthly payments.
Bankrate offers you a variety of general loan rates from various mediums like banks, credit cards, and loans.
2. Nerdwallet
The Best Business Loan Calculators Designed for Small Businesses Based in the USA. Nerdwallet is a simple business loan calculator. It allows you to estimate monthly and yearly loan payments, interest rates, and loan terms. This calculator is only for small US businesses. After answering a few simple questions about your loan, the business loan calculator will provide you with an estimate of your small business loan rate.
Nerdwallet offers an additional intuitive option. Get helpful advice on the best loan options for your situation based on your loan amount, loan term, and Annual Percentage Rate (APR). A slider that allows you to set the Annual Percentage Ratio (APR), is available. The platform provides definitions of basic terms used in the calculation of loans and a helpful FAQ section for those who are new to the world of business loans.
3. Shopify business loan calculator
The Best eCommerce Platform Loan Calculator. Shopify is an eCommerce platform that offers a free business loan calculator. This allows you to quickly calculate fixed-rate loans for your business. This calculator helps you estimate the cost of a loan.
This calculator will help you estimate the cost of your loan with information such as the amount of the loan, the annual percentage rate (APR), and the length of the loan term. You can also enter any additional monthly payments that you would like to add to your loan. Shopify Capital loan solutions include a comprehensive FAQ section. This solution allows you to obtain funding from Shopify quickly and without lengthy applications.
4. Guidant Financial
Best Business Loan Calculator, Specifically Optimized to Small Business Administration (SBA), Loans. Guidant Financial provides a service that assists individuals in finding the right loan funding solution for them. It also offers a simple online calculator that will give you an estimate of the monthly cost of a loan and the potential repayment or amortization schedule.
It is a fully-equipped business loan calculator that provides estimates for a variety of loans. These loans include loans for small businesses, unsecured loans, and loans related to home equity.
Simply set the amount you want to borrow using the intuitive slider. Then, enter the interest rate and loan term to see the monthly amortization schedule.
5. LendingTree
The Best Business Loan Calculator to Estimate Your Creditworthiness. The online marketplace LendingTree offers a variety of loan types, including auto loans, SBA loans, and personal loans. It also provides comparison services and educational programs that all relate to loans.
LendingTree’s online business loan calculator gives you more than loan estimation capabilities. You can use the business loan calculator to calculate how much you could borrow based upon your business’s start date, annual revenues, estimated credit score, location, and credit score.
LendingTree provides you with detailed information and details about all aspects of taking out loans. It includes key information like the definitions of various terminologies, the factors that affect your loan repayment, and the types of fees charged by creditors.
6. Calculator.net
The Best Business Loan Calculator With Extended Details. Calculator.net provides every internet user with a complete collection of online calculators that can be used for financial, health, and fitness, as well as other purposes. It was launched in 2008.
Calculating the final repayment amount and total cost of your business loan is easy with the help of our calculator. It takes into account your fees and calculates the real annual percentage rate (APR), which will give you an accurate estimate of the actual cost.
Calculator.net’s Loan Calculator collects information about the loan amount and interest rate. It also provides explanations and an amortization schedule.
7. Citizens Bank
Top Business Loan Calculator With Intuitive User Interface
Citizens Bank is a financial platform that offers a business loan calculator. This calculator is much more than a loan cost estimator. The calculator will provide you with estimates once you have provided details about your loan amount, interest rates, amortization, and creditworthiness. This calculator calculates your monthly income and monthly obligations to determine the maximum loan amount you can take.
Use intuitive sliders to set values. Its website provides definitions of commonly used terminologies. The loan calculator calculates many types of loans including student loans, home loans, and investment loans. It also calculates auto loans and credit card loans.
8. Lendio
The Best Business Calculator With Dedicated Calculators for Different Loan Types
Lendio allows you to easily adjust all values with its intuitive sliders. A California-based platform for loaning helps small businesses get loans. You will find a complete list of calculators that can be used for specific purposes.
The platform gives you free access to a dedicated ACH Loan Calculator, Business Credit Card Calculator, Business Term Loan Calculator, Equipment Loan Calculator, Short-Term Loan Calculator, Start-up Business Loan Calculator, Commercial Mortgage Calculator, and Line of Credit calculator.
Amazon Lending: 6 Funding Options for Sellers
Merchant Cash Advances (MCA)
This financing is based on future credit card income. Merchant cash advances do not have fixed monthly payments. However, the lender will take a percentage of your credit card sales each day. This type of funding is not subject to a fixed rate of interest, but can still be costly in terms of overall cost.
Peer-to-Peer Financing (P2P)
Peer-to-peer lending transactions are another source of Amazon business loans. The amount you wish to borrow and the interest you are willing to pay on a peer-to-peer lending site are all you need. Potential lenders will then bid for your loan. This type of loan is only available to those with good credit ratings.
Factoring
To raise funds, you can also sell your receivables. Factoring is a type of loan that is much easier to obtain than traditional bank loans. It typically comes with higher interest rates than traditional bank loans.
Credit Cards
Amazon loans are not the best option due to the high-interest rates. However, business credit cards may be a good alternative if you need short-term financing. You can keep your costs low by paying on time and negotiating with credit card companies to get the lowest interest rates.
Kabbage’s Amazon Loans
You can also sign up for a line credit at Kabbage to get funding for your Amazon business. Kabbage’s fully automated online application is more efficient than Amazon loans from banks or business credit card companies. It examines your business data and not just your credit score. We’ll review your business health instantly if you link the services that you use to manage your business. The funds will be available in as little as three days. There is no paperwork, faxing, or waiting in line. Your funds will be in your account within a few minutes to fewer than three days.
Kabbage was established with the purpose of providing working capital for small businesses that were not being served by traditional banks-lending models. Our small business loans are particularly relevant to online sellers such as Amazon.
Amazon Lending
Amazon Lending Program has been offering direct loans to Amazon sellers over the past few years. This program allows Amazon’s online sellers to borrow working capital from Amazon at rates typically lower than a credit card. In many ways, Amazon Lending works in a similar way to Kabbage. The application process is simple and can be completed online. Loan amounts are typically smaller than traditional small-business loans from banks. Money can also be made quickly.
There are some differences between Amazon Lending loans and Kabbage’s Amazon loans. Amazon Lending is an invitation-only program. Amazon chooses sellers based on their online sales history to make it possible for them to apply for an Amazon Lending loan. This means that even if your sales history is excellent and you want to get a loan, Amazon won’t allow you to apply for Amazon Lending without inviting you.
Conclusion
You can see that there are many funding options for Amazon sellers and e-commerce sellers. When it comes to getting the right loan for your business, be sure to do your research and determine your exact business goals and needs do your own calculations before taking any loan.
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