Calculating Payments on Business Loans

Shield Funding wants you to understand all the different payment options available with small business loans to help you determine the best possible business funding program to help your company grow. For some clients a daily or weekly payment option works because their cash flow aligns with the payment requirements and it results in a faster completion of payments. For others, larger monthly payments spread out over a longer period of time works better. Use the business loan payment calculator below to determine the payment options available on the amount of funding you need based on the duration and rate of that funding.

What is a Factor Rate?

Factor rates are written in decimals although you can read a factor rate as a percentage. The calculator displays percentages to keep it simple. As an example, a factor rate of 1.18 in percentage terms is 18%. A factor rate of 1.45 written as a percentage is 45%. To explain in an actual business funding option, borrowing $10,000 at a factor rate of 1.25 (25%) over any specified time period means you will pay back $12,500 over that time period regardless of how fast you pay it off (in the event you decide to pay it off early). It is important to point out that there is a significant difference between factor rate and APR. Factor rates are determined up front utilizing the original borrowed amount whereas APR is continuously calculated on the outstanding debt. For a more detailed analysis of rates check out our guide to business loan rates.

Daily Payments

With this option the funds will be withdrawn daily, five days a week not including holidays, until the account is settled.

Weekly Payments

With this option the funds are withdrawn on a weekly basis, one payment per week, until the account is settled.

Monthly Payments

With this option payments are made on a monthly basis, one payment per month, until the account is settled.