Are you known for having great business ideas but you aren’t exactly savvy when figuring out costs?

Because you’re in business to make money, you also know need to know how to save money. As business owners grow, expand, and improve their businesses, they get loans to stay on track financially.

But how much does a loan cost?

Will you qualify for one and do you have the capital on hand to repay a loan?

If only there was a technological tool designed to answers these questions…

Well, there is.

There are tools, like the Camino Financial Business Loan Calculator, that help you decide whether to get a loan by calculating the costs you’ll pay. Here’s how a small business owner used the financial tool to get answers.

## Juan Needs a Loan But Has Questions

After Juan immigrated to the United States, he provided fruit and wine imported from South America to wholesalers. As a food importer, he worked directly with growers in Chile.

Costs for traveling between countries, paying customs duties and U.S. entry fees, and renting storage space added up quickly. In addition to paying the Chile workers, Juan also paid part-time employees to help him distribute the fruit and wine.

He started to struggle to manage his finances.

Juan then sought help from an online lender to determine if he can afford a loan. His loan specialist recommended using a business loan calculator to see how much he could comfortably afford.

Juan had no idea such a tool existed and how easy it is to use. After entering a loan amount and choosing a specific term and interest rate, the business loan calculator provided costs within seconds.

Once he reset the financial tool, Juan re-entered loan criteria until the associated costs were a comfortable match.

He decided on a loan amount of \$20,000 payable in 48 months at a 1.75% interest rate. Juan knew the closing fee would be \$1,398 and total interest of the loan amounted to \$9,727. He knew he could manage the monthly payments of \$619.

Additionally, the loan specialist pointed out that Juan should only get the loan if he meets two other requirements:

1. The monthly payment shouldn’t exceed 80% of the net profit.
2. Total loan costs must not exceed the expected total return after making the investment.

Monthly net profits for Juan’s business average about \$900 so the monthly payment of \$619 is within the 80% guideline.

By making 48 payments, Juan will spend \$11,125 in costs over the life of the loan and realize an estimated return of \$13,488.

He sees instantly that a loan is a profitable solution to improve cash flow saving him money in the long run. One way Juan uses the loan proceeds is to put away capital when cash gets low. He’s also increased the amount of food and wine he sells by 10% to help cover loan costs.

Likewise, by adding one more employee to his team, Juan delivers orders faster and completes other tasks quicker. The business loan calculator helped Juan face a hard business decision so he felt confident about getting a loan.

## A Business Loan Calculator Eliminates Guesswork

How about you? Do the what-ifs in life trip you up? With a business loan calculator, you know before committing to a loan what amount you can afford.

Just like Juan, you can review real costs to make sure getting a loan doesn’t wreck your budget.

In fact, a business loan could be just what your business needs. Why not use the free financial tool to find out loan costs, sooner rather than later?