Access to the right funding can have a transformative impact on the future of a business. If you’re looking to make capital-intensive investments in your organization, then a small business loan might be just the solution that you’ve been searching for.

Whether it’s buying new equipment, expanding your operations, or purchasing inventory, business loans are there to make it possible. In this post, we’ll run through some key things to know before deciding the business loan amount that’s right for you.

How Much Can You Borrow for a Business Loan?

Sometimes, you’ll just need a little extra cash to cover routine monthly expenses during a low period for your business. At others, you might need a significant sum to help take your business to the next level.

Business loans offer a tremendous level of flexibility. At American Capital Express, we provide small and mid-size business owners with the cash they need to succeed. You can get business loans ranging anywhere from $5000 all the way up to $5 million, repayable over 2 - 25 years.

Using a Business Loan Calculator: How Much Can You Borrow? 

You can figure out what size business loan your business can comfortably accommodate by using a business loan calculator.

These are designed to help business owners figure out the financial implications of their loans. For instance, they’ll cover the amount of interest you’ll pay based on the size of the loan, the monthly payments, and the overall lifetime cost of the loan.

It’s recommended to use a business loan calculator to ensure that you have a full understanding of the financial commitment of the loan. If you’ve tallied everything up, and it all looks good to you, then you can proceed with the loan with confidence that it'll be the right thing for your business.

What is the Average Small Business Loan?

As we said above, business loans vary widely in value. At American Capital Express, we help business owners get loans that range from $5,000 to $5 million.

But what’s the average business loan amount? According to data from the Federal Reserve, the average is $663,000. Of course, that doesn’t exactly tell the whole picture of business loans — a few $5 million loans will skew that figure. In any case, the average small business loan shouldn’t be of too much importance for business owners. What matters is getting the loan amount that’s right for you.

Average Monthly Payment for Small Business Loans

It’s recommended to use a business loan calculator to figure out monthly payments. After all, that figure depends not just on the size of the loan, but also on the repayment terms. You’ll pay more per month if the loan is repayable over two years, and less per month if it’s repayable over ten years.

Long-term loans of $50,000 result in monthly payments of around $1000. Short-term $50,000 loans can have monthly payments of $4,000+.

Get In Touch With American Capital Express Today

Need some help figuring out how much you can borrow? Get in touch with American Capital Express today.