All the calculations are provided as guides only. They don’t guarantee 100% of the same cost you will be charged, but they help you understand the overpay much better. Unless you change the APR, the calculations will be based on most lenders’ average or lowest rate for each loan type. You’ll find the accurate interest rate and the real cost of your cash advance after you get approved before you sign the agreement. It will depend on many facts.
Each company calculates APR differently, and 100% of people would not pay this amount because it is usually higher than a person’s credit score can afford to repay in 3 months or less.
Most lenders don’t allow you to change the APR (bank loan) after giving you the approval and until your loan is clear.
This article will show you how to calculate the total of your cash advance and at what APR interest rate you would be charged on average. Cash advances/loans that are $300 or less will usually have an APR of 43%. For example, if:
Your approved term of the loan is one month, Your required monthly payment is $100, and You get an advance amount of $300 for 12 months. The calculator will tell you what APR interest rate would be charged on average for this particular case. The companies use the APR interest rate to calculate your monthly payment.
In most cases, you will pay much higher than 43% APR because the companies have this term of 3 months or less until the loan is due. Here we show you a case of applying for a $300 loan for five days.
You apply for $300 and get approved for $600 (2 x loans). For example, if:
Your required monthly payment is $100, and You get an advance amount of $900 for 30 days. The calculator will tell you what APR interest rate would be charged on average for this particular case.
How much deposit do I need for a business loan?
In most cases, you won’t need a deposit from the company to get a business loan. You can approach a company with no guarantee required. We have 1 case here where the person who applied for $300 and got approved for $600 needed his own money to get his loan. The following 2 cases are all in terms of businesses seeking loans without having any requirement of depositing their own deposits first:
Business seeking loans without having any requirement of depositing their own deposits first:
Case 1. Businesses seeking loans without having any requirement of depositing their deposits first:
The person who applied for $300 and got approved for $600 needed his own money to get his loan from the bank. So he needed to deposit $300 to get his loan which is similar to the above case.
In this case, we assumed that you get paid every two weeks. How much money must you have in your account at the end of each two weeks?
To calculate how much money you must have in your account at the end of each two weeks, sum up all the payments received until two weeks before the due date for the next period (1 month). For example:
The total amount of money you need will be based on these calculations.
How much can I borrow from the bank for a business loan?
Usually, banks will let you borrow more than the amount you need because they have no risk in lending to you. For example:
You need $600 to get your business done, but we suppose you can borrow $5,000 from the bank. So we assume that the bank will give $500 for the first loan and then lend another $500, which is equivalent to 2 x loans = $1,000 each.
If we multiply cash advances/loans over and above a certain amount of money with your APR interest rate as a guide, it will show you how much money you can get with this option. Here, we will calculate for a second case where $5,000 is over and above the amount you need.
Case 2. Businesses seeking loans without having any requirement of depositing their own deposits first:
The person who applied for $300 and got approved for $600 needed his own money to get his loan from the bank. So he needed to deposit $300 to get his loan which is similar to the above case. We assume that you get paid every two weeks. Most companies let you borrow more than $300. So we believe this is the case as well.
To calculate how much money you must have in your account at the end of each two weeks, sum up all the payments received until two weeks before the due date for the next period (1 month). So:
You need $500 to get your business done, but we suppose you can borrow $6,000 from the bank. In this case, we assumed that you get paid every two weeks by checking your bank account every two days.
It depends on your financial circumstances. The amount you will be able to borrow is based on:
The type of loan you are applying for, and The bank’s lending policies. For example:
You need $500 to get your business done, but we suppose you can borrow $6,000 from the bank (10 x loans). So we assume that the bank will give $500 for the first loan and then lend another $500, which is equivalent to 10 x loans = $1,000 each. If we multiply cash advances/loans over and above a certain amount of money with your APR interest rate as a guide, it will show you how much money you can get with this option. Here we will calculate for a second case where $5,000 is over and above the amount you need.
Case 3. Businesses seeking loans without having any requirement of depositing their deposits first:
The person who applied for $300 and got approved for $750 needed his own money to get his loan from the bank. So he needed to deposit $300 to get his loan which is similar to the above case. We assume that you get paid every two weeks. Most companies let you borrow more than $300. So we think this is the case as well.
To calculate how much money you must have in your account at the end of each two weeks, sum up all the payments received until two weeks before the due date for the next period (1 month). So:
Businesses usually need more than $2,000 to get their business done. In this case, we assumed that you could borrow $20,000 from the bank as 10 x loans each for one month. So we believe that the bank will give $2,000 for the first loan and then lend another $2,000, which is equivalent to 10 x loans = $5,000 each.