Atlanta (PRWEB) October 29, 2013
IOU Central, a leading online small business lender, today announced a new loan savings calculator aimed at helping small business owners determine the cost savings achieved by paying off an IOU Central loan prior to the end of its term. Combined with IOU Central’s existing loan cost calculator, the tools give potential borrowers a complete picture of the total cost of a loan and options for paying it back in the most cost-effective timeframe possible, before they begin the application process.
As the lowest cost lender outside of traditional banks, IOU Central created the calculators to help small business owners understand the full cost of a loan, as well as compare different repayment timeframes and the resulting cost savings.
“Most lenders offer pre-computed interest rates, meaning they calculate the interest payment for the entire length of the loan and add it to the principle when the loan is issued,” said Robert Gloer, president and COO of IOU Central. “The problem is that small business owners think they will save money by paying off a loan early with these lenders, but in reality they’re still required to pay the same amount of interest as they would if the loan had been paid off at the end of the term. Because we take a different approach to interest, we’re providing a loan cost savings calculator to help small business owners plan out loan repayment and as a result, save money.”
Unlike most other lenders, IOU Central offers simple interest and calculates the interest due by the loan’s principle balance that is outstanding each day. Therefore, as the loan amount decreases, so does the interest payment.
The new loan savings calculator is available at http://www.ioucentral.com/help/savings_calc.
About IOU Central
IOU Central is a leading online lender specialized in helping small businesses with healthy cash flow. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Central’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes small business loans of up to $100,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Central’s speed and transparency make it a trusted alternative to banks. Based in metro Atlanta, Georgia, IOU Central is a privately held subsidiary of IOU Financial (CNSX: IOU), which is headquartered in Montreal, Canada. For more information, visit http://www.ioucentral.com.