When you're an entrepreneur, there are a thousand things to worry about and take care of, most of them related to money and finances. Business finance is not easy to tackle, and it's even more stressful than personal finance, because it's not just your own skin in the game, it's an entire company, employees, investors, etc. So, you need to be extra careful and extra vigilant about financial matters. What can help is if you use a business finance calculator. Here are the ones you should be using!
What Is A Business Finance Calculator?
Before we start, let's explain and clarify what a business finance calculator is - you see, when you're dealing with finances, particularly loans and budgets, it's ideal to have a clear image of what you can expect. What amounts you need, how much you can get, what you're going to pay back, what that represents in percentages, how long you're going to be repaying for, etc. You can do that individually, of course, but it's much more efficient to use a business finance calculator. Essentially, it uses the basic information to give you instant, accurate results on what you can expect for your business, financially.
1. Starting Costs Calculator
Before you can even think of anything else, you need to figure out whether or not you can actually afford to start a business. Do you know how much it's going to cost you? There are a million costs associated with starting your own business, and you need to put them all together to see what your grand total might be. B Plans has an excellent starting costs calculator that you can use to sort out your initial total cost and see if you can swing it. If you can't afford it, fear not; you can get a business loan. We'll talk about calculators for that in a second.
2. Business Loan Calculator
If you're setting up your own business and you're not getting help from anywhere and you're not already a Rockefeller, chances are you're going to need a business loan. Now, business loans are pretty par for the course for fledgling enterprises and start-ups of all kinds, but you've still got to work out the basics and logistics.
How much do you need to borrow? How much can you borrow? What are your monthly payments going to look like? How much do you pay in interest? What is your total payment, and for how many years are you getting this loan? These are all pertinent questions that will find answers with the help of a business loan calculator like the one available from Experian. Asset Finance Solutions also offers a good finance calculator, if you want an alternative.
3. Commercial Mortgage Calculator
If your business is going to have a physical office, then you probably need an office space, or a shop floor of some kind - a place where you can actually conduct your business. For that, you're going to need to rent a space, or get a commercial mortgage.
As you can probably guess from the name, a commercial mortgage is a mortgage for a commercial space, and guess what - there's a calculator for that! This tool can help you figure out your monthly repayment, interest, and other charges, based on the amount you borrow. Check out the business mortgage calculator offered by Mortgage Advice Bureau. Alternatively, KIS Finance has a good commercial mortgage calculator.
4. Break Even Calculator
So, you know how much you've invested in your business, and you know what you're making, more or less - how much do you need to make regularly to break even? And for how long? Will it be years until you break even, or just months? There's a calculator for that Omni Calculator.
In conclusion, business finance calculators are extremely convenient to use and are helpful in a variety of situations that arise when you're starting a business, particularly when you're looking to borrow money. A loan comes with a lot of components you need to look out for and amounts to be aware of, so the easiest way to achieve a clear, accurate picture is to use one (or more!) of these 4 business finance calculators.