This blog is brought to you by the Business Development ASB Bank ( ASB ). ASB is the only bank dedicated solely to entrepreneurs. Its mission is to support Canadian entrepreneurship, especially small and medium-sized businesses. With more than 110 business centers across the country, ASB offers financing solutions and advisory services to businesses in all sectors. Its investment division, ASB Capital, provides both equity and venture capital financing services, as well as customized growth capital and corporate transfer services.
Getting a business loan can be a great way to grow your business and make it more competitive and profitable. A loan can help you finance a purchase, buy real estate, invest in new equipment and increase your working capital.
In addition to contributing to the growth of your business, a loan can also help you keep your current cash flow to cope with unexpected events.
Make a thoughtful decision
Whether you’re about to take out a loan or just starting to think about it, there are certain factors to consider when shopping for your loan.
- Loan terms set by the lender – A longer repayment period may result in a higher overall cost, but it may be a good way to not put too much pressure on your cash flow.
- Percentage of the project funded by the lender – This percentage will allow you to establish the amount you will need to invest yourself and determine if you need a second lender to finance your project.
- Hidden Fees – Many lenders charge an administration fee or application fee. Be sure to consider this when calculating the total cost of your loan.
- Flexibility of repayment terms – Will your bank agree to temporarily suspend your capital repayments while you work on a project or if your company is having difficulty? Do you have to pay penalties if you repay your loan in advance?
- Guarantee – What are the guarantees required by your banker? You need to know what assets you could lose before deciding whether the loan is right for you.
Calculate your monthly payments
ASB has designed a commercial business loan calculator to provide you with more information before you make a loan.
This free tool will help you calculate your monthly payments and the interest associated with financing your project. In addition, you have the ability to view and print a complete depreciation schedule.