Finance Your Marketing Campaigns Without Drowning In Debt
Business owners marvel at another entrepreneur's great marketing campaigns but they also wonder how much they cost. In all likelihood, a business owner financed the outreach with a business loan.
You may back away from the thought of going into debt and having an ongoing financial obligation to repay. But what if you saw the debt in a different light? Having sufficient funds to finance a project can help you succeed.
Even so, you still wonder if your business can afford it.
A business loan calculator removes the guesswork immediately. The technological tool helps you decide whether to get a loan and reveals what you'll end up paying.
How a loan helps finance marketing
Drowning in debt is never pleasant. You'll never face that situation when you take on debt without getting in over your head.
By having sufficient cash on hand, you can concentrate on using the money specifically for marketing without dipping into funds you use for day-to-day operations. Likewise, you can give your business an instant boost in sales when you reach your target audience with your business's products and services.
Furthermore, you can set up your marketing budget to target weak areas that need improvement.
Perhaps the best use of the money is to hire a marketing professional, increase your existing ad campaign or improve your brand identity. Some business owners focus on improving digital marketing through social networks while others build stronger relationships with their customers.
Essentially, you can grow your revenue quicker because nothing's holding you back from funneling funds for marketing purposes.
How a business loan calculator works
By filling out a few entries, the business loan calculator provides a snapshot of the total costs to take out a loan.
First, you enter a loan amount, select the number of payments, and choose a monthly interest rate. Once you click on calculate, you can see instantly how much you'll pay for interest and the closing fee, and your monthly payment.
At any time, you can reset the financial tool and re-enter loan criteria to come up with a comfortable match.
When using the online calculator you should be aware of two other requirements before deciding on whether to go forward with a loan.
The monthly payment shouldn't exceed 80% of the net profit.Total loan costs must not exceed the expected total return after making the investment.
Let's say you need to borrow $20,000 and repay the loan in 36 months at a monthly interest rate of 1.75%. The business loan calculator indicates your monthly payment will be $753. You estimate your monthly net profit averages about $950 so the monthly payment falls within the 80% guideline.
Additionally in this example, your total return is more than the projected loan costs of $8,524. That means if you invested the funds in inventory or equipment, those purchases didn't exceed your expected profit during the loan term after deducting the costs.
By using the calculator, it's easy to see that getting a loan is a wise and profitable decision. Business owners find that the tool helps them pinpoint what loan amount works within their business's budget without adversely affecting their cash flow.
What's your next step?
As you can see, getting an affordable loan makes perfect sense to grow your business.
Why not use a business loan calculator to determine what amount you can repay comfortably?
It only takes a few minutes to use the tool and it will help you make an important financial decision that could propel your business forward.