Business loan calculator

Estimate how much your business could borrow from its deposits, and what an offer costs in dollars — whether it is quoted as a factor rate or an interest rate.

What it needs: Two or three numbers
What it sends: Nothing — it runs in your browser

1 · How much

How much could my business borrow?

Offers are usually sized from deposits — what actually lands in the account — rather than revenue or projections.

Average monthly deposits, last six monthsLeave out one-offs: a loan, a tax refund, an owner putting money in.

A typical range

$72,000 – $117,000

80% to 130% of one month of deposits. Steady months, many customers and little already owed move you up it; bounced payments, a falling trend and existing debt move you down.

2 · What it costs

What would it cost?

Put in the figures from an offer — or the ones you are wondering about — and see the total in dollars.

AmountTerm, in monthsPaymentsThe cost is quoted asFactor rateThe number the amount is multiplied by, e.g. 1.26

Total you repay: $157,500
Cost of borrowing: $32,500
Each weekly payment: $6,058; 26 payments
As an annual rate: 93.3%; What the factor works out to

Try the same factor over fewer months: the dollars stay the same and the annual rate climbs, because you have the money for less time. That is why the total and the term matter more than the factor.

Illustrative only. These are estimates from the figures you enter, not an offer of credit or a quote. What a lender offers depends on your full file, and the lender makes the decision.

How the numbers are worked out

The borrowing range is 80% to 130% of one month of average deposits — the range most offers land in. Where you fall inside it depends on how steady the months are, how many customers the deposits come from, how long you have been trading, and what you already pay other lenders. How much can my business borrow explains each.

A factor rate is multiplied by the amount to give the total you repay, split evenly across the payments. An interest rate is worked out like an ordinary loan, with the same payment each period.

The annual rate is the yearly rate at which those payments are worth the amount you receive. For a factor, it shows what the factor hides: the same factor over a shorter term costs the same dollars and a much higher annual rate. Fees outside the total are not included — ask the lender for them.

Comparing two offers? Run each one and compare the total you repay, the payment and the number of payments. What working capital costs shows how.

Want the real number?

We take one application to the lenders we work with. You see the total before you decide anything.