How is interest calculated on a business loan?

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How is interest calculated on a business loan?

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Here are some factors lenders take into
consideration before granting business loans

• A business loan is a perfect solution to overcome
  financial stress and crisis. It helps in handling
  all kinds of business-related expenses. Small or
  big businesses need investment at every step of
  growth. The entire lifecycle of a business
  depends on a smooth source of funds. In India,
  there is a lot of entrepreneurship energy, but
  there is a lack of funds.

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What is the rate of interest?

• It is not a fixed rate and there are a lot of
  variations when you choose different loan
  providers or financial institutions. The interest
  rate on a business loan is calculated on the
  basis of eligibility, tenure and commercial loan
  amount. Find out how you can work out to get the
  best rate with a business loan interest
  calculator.

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Factors that decide the rate of interest

• Loan provider A loan provider is directly or
  indirectly responsible for the business loan
  interest rate. It is on the financial institution
  and the rate is different for every loan
  provider. Some would offer you a low rate, while
  others go for a high rate of interest.
• Things like credit score, income, business
  growth, stability, revenue, business plan and
  business cash flow are behind deciding the rate
  of interest. The business rate of interest is low
  when the eligibility is well fulfilled. This will
  help in getting the best rates and it makes the
  borrowing burden free.

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Grow and develop your business

• The tenure you choose also determines the rate of
  interest. If you go for a long-term loan, the
  rate of interest is low. For a short-term loan,
  the rate of interest is high.
• Loan amount For a small amount, the rate of
  interest is high. However, when you go for a high
  principal amount, the rate of interest will be
  low.

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Borrowing with bad credit

• Use a business loan interest calculator when you
  are looking for a commercial loan. It will be
  helpful to grow and stabilize your business. Work
  on the areas that need funds to develop and
  expand.

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Clix Capital Services Private Limited

• Address
• 901b, 9th Floor, Two Horizon Centre, DLF Phase V,
  Gurgaon, Haryana, India 122002
• Phone Number 1800 200 9898
• Email us at  hello_at_clix.capital
• Website www.clix.capital

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