Business loan FAQ

Enter the loan amount, interest rate and term in months. A standard amortizing payment is P × r ÷ (1 − (1 + r)^−n), where r is the monthly rate and n is the number of payments. The result is an estimate; a lender's actual terms control.

Match the term roughly to the useful life of what you are buying. A longer term lowers the payment but usually raises total interest. Compare a few terms side by side before asking lenders for quotes.

Get each offer in writing and compare total cost (interest plus fees), estimated APR including fees, monthly payment, term, prepayment terms, collateral and guarantees, and how long each lender needs to close.

The interest rate is the cost of borrowing the principal. APR folds certain upfront fees into an annualized rate, so two loans with the same rate can have different APRs when fees differ.

DSCR = net operating income ÷ annual debt payments. Many lenders look for 1.25x or higher, but each lender sets its own standard. Below 1.00x means operating income does not cover the debt payments.

Total interest = (monthly payment × number of payments) − principal. Add upfront fees to see total borrowing cost, and compare that with operating income to check interest coverage.

Use the same amortization math with the SBA program's typical term for your use of funds. SBA maximum rates and fees change over time; confirm current figures with the lender and sba.gov.

Enter the equipment cost, any down payment, the rate and the term. Compare the payment with the extra revenue or savings the equipment should produce.

No. Profit Theory, LLC is not a lender or payment processor and is not owned by or affiliated with any lender or payment processor. Lenders decide approval, rates and terms. A financing specialist can help you prepare and, with your approval, introduce providers we select based on fit.

No. Calculator outputs are educational estimates based on the numbers you enter. They are not offers, approvals or guaranteed rates or savings.