What costs for a business loan should I take into account?
Every situation is different. One takes out a loan to buy a car, while the other takes out a loan to open a new property. Every situation is therefore different and the interest rate of the providers changes and differs constantly. As a result, we cannot tell you exactly which costs you should take into account. To gain insight into the costs, we have prepared a handy calculation overview for you:
- Closing commission: this is the amount that the financing party charges for taking out your business loan. The commission is usually between 2 and 3 percent of the loan amount. So do you want to borrow 10,000 US dollars? Then the commission is between 200 and 300 US dollars.
- Interest costs: when you take out a loan, you always have to pay an agreed percentage of interest. The interest is calculated on the determined amount that you want to borrow. The v differs per provider how high the interest is, so always check for each provider what the level of interest is. Also always keep in mind that the level of the interest can change during the term. So make good agreements about this with the financing party, because that way you will not be faced with surprises.
- Fixed-interest premium: do you choose not to immediately withdraw the entire amount? In that case, you must pay a fixed-interest premium for this. This is usually lower than the interest paid on the amount withdrawn.
- Early repayment: do you have the option to repay part of the debt early? In some cases, this can lead to a fine that you have to pay. You can read in your contract whether this is the case. So always look carefully at this before you take out a loan.
- Adjustments: it is possible that adjustments have to be made to the contract. This may be the case, for example, when changes take place within the business situation. This often involves additional costs, so pay close attention to this.
- Transfer of current obligation: do you have a personal loan or an outstanding balance on a revolving credit ? You can choose to transfer this to a business credit. Please note that this entails additional costs. It differs per financing party how high the costs are.
Would you like to know more about the costs of a business loan?
Do you also want to gain insight into the costs that you have to take into account when taking out a business loan? Then contact the financing party of your choice. Do you want to know which party best meets your wishes and requirements? Use the handy comparison tool on our website.