Business Acquisition Loan Calculator

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How to Use Business Acquisition Loan Calculator

Estimate Monthly Payment
Estimate How Much You May Qualify For
Terms and Explanation
How to Calculate Payments
How to Reduce Costs

Estimate Monthly Payment on a Business Acquisition Loan

To make the best use of this business acquisition loan calculator, you’ll need a few pieces of information. This calculator requires the following:

You will get the estimated monthly payment from the business acquisition loan calculator.


Estimate How Much You May Qualify For

You can also estimate how much you may qualify for if you take out a business acquisition loan. Once you fill out your information, the calculator will give you a range of dollar figures in which you might be able to borrow. 

This will inform you of whether a loan can provide all the financing you need for the purchase of an existing business or franchise. You may find that you have to look for additional financing from other sources. 

Business Start Date

This refers to the month and year your business officially began operating.

Annual Revenue

Annual revenue is the amount of money your business earns in 12-months.

Last Month’s Deposits

Last month’s deposits reveal how much money you deposited into your business bank account in the past month.

Estimated Credit Score

This is where you’ll choose your estimated business credit score.


Terms and Explanation

Here are the key pieces of information you’ll need to enter and notice as outputs on our business acquisition loan calculator.

Buyout Amount

The most important input is how much money you wish to borrow. Here is where you’ll enter the buyout amount of the business or franchise you hope to buy.

Loan Term

Loan term refers to how long it will take you to repay your business acquisition loan. Note that the longer the term is for your loan, the lower your monthly payments will be. However, you’ll pay more in interest over time.

Annual Rate

The annual rate on your business acquisition loan will influence your monthly payments and your overall cost of borrowing. A higher interest rate will lead to higher payments and a more expensive loan.

Fees

It’s not uncommon for business acquisition loans to come with fees. Some examples of these fees include origination fees and guarantee fees if you take out an SBA loan.

Down Payment Amount

This is the amount of money you must put down to be eligible for a business acquisition loan. Depending on the lender and loan types, this may be anywhere from 10% to 30% of the total loan amount.

Estimated Monthly Payment

This is the amount you’ll owe your lender each month. It includes payment toward your principal, interest, and guarantee fee, if applicable.

Total Repayment

Total repayment tells you the total amount of money you will have paid over the life of your business acquisition loan.

Estimated One-Time Fees

This will show you how much you may pay in one-time fees, expressed as a dollar amount.

Estimated Down Payment

Estimated down payment shows how much you’ll pay for a down payment, expressed as a dollar amount.


How to Calculate Payments for Business Acquisition Loans

The cost of business acquisition loans and monthly loan payments are typically based on these factors. 

1. Loan Amount & Terms

In general, these types of loans range from $5,000 to $5,000,000. Terms are usually between 10 to 25 years unless you take out a revolving loan.

2. Interest Rates

Interest rates refer to how much you’ll pay to borrow money for your business acquisition. If you have good to excellent credit, you can lock in a rate as low as 5.5%.

3. SBA Loan Fees

The largest loan fee is usually the SBA guarantee fee, if you use an SBA loan to fund your business acquisition. Guarantee fees usually range from 2% to 3.75% of the guaranteed loan amount. 


How to Reduce Costs for Business Acquisition Loans

Fortunately, there are several ways you can save money on a business acquisition loan. First, improve your credit score before you apply. This can result in a lower interest rate, which can help you keep thousands of dollars in your pocket. Also, do your best to save for a larger down payment so that you have less to finance. While choosing a shorter term will mean larger monthly payments, it can cut down on interest costs over time. 

FAQs

A business acquisition loan is a type of financing you can use to purchase an existing business or franchise. It can provide you with hundreds of thousands or even millions of dollars to meet your goals.

  

The amount of interest you’ll pay will depend on a number of factors, like the lender you choose, your interest rate, and repayment terms. In general, a lower interest rate and shorter repayment terms will save you the most on interest fees.

 

Not all business acquisition loans are created equal. If you take out an SBA loan to fund your acquisition for example, you’ll have to wait longer than you would if you chose a traditional term loan or revolving line of credit.

Most business acquisition loans come with large borrowing amounts between $5,000 and $5,000,000. Your credit, business history, and the type of business you wish to acquire will determine how much you qualify for.

To secure a business acquisition loan, you’ll likely need a minimum credit score of 600, monthly revenue of at least $8,000, and at least 6 months of business under your belt. Of course, eligibility requirements vary based on lender and loan type.

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