Fundation Advances Small Business Education Agenda With Release of “Simple Interest Loan Calculator”

Share Article

Fundation Group LLC, a leader in online small business loans, recently launched a simple interest loan calculator, a comparison tool on its website http://www.fundation.com that educates small business borrowers on the critical differences between simple interest business loans and fixed payment contracts, such as merchant cash advances and other daily payment financing arrangements.

Fundation Online Business Loans
Fundation is often mistakenly compared to credit providers that offer ‘cents on the dollar’ payment contracts that are marketed as loans.

Fundation Group LLC, a leader in online small business loans, recently launched a simple interest loan calculator, a comparison tool on its website http://www.fundation.com that educates small business borrowers on the critical differences between simple interest business loans and fixed payment contracts, such as merchant cash advances and other daily payment financing arrangements.

“In addition to offering technology-based business loan solutions, we strive to educate small business borrowers on the fundamentals of business finance and financial management,” said Fundation CEO Sam Graziano. “Alternative lending is a broad catch phrase for a wide and varied set of credit providers to small businesses, however, the differences amongst them are incredibly important to understand.” Graziano added, “Fundation is often mistakenly compared to credit providers that offer ‘cents on the dollar’ payment contracts that are marketed as loans. While these products serve a limited purpose as a liquidity tool for short-term cash flow needs, business owners are unaware of the actual economic implications of these products which carry materially higher effective financing rates than are advertised. Our new interactive tool allows business owners to easily compare how a true simple interest business loan works versus these fixed payment contracts.”

This simple interest loan calculator allows business owners to enter the terms of their “cents-on-the-dollar” offer and see how much more they will be paying than if they utilized a simple interest loan. In addition, this tool illustrates the effective Annual Percentage Rates (APRs) of a simple interest loan and a “cents-on-the-dollar” contract over the life of the contract and if the loan is repaid after one month.

“Moreover," Graziano said, “at Fundation, we often find ourselves having to explain how much more attractive our products are than offers received from a ‘cents-on-the-dollar’ credit provider. Interest on our products are just like fixed rate mortgages, they are calculated based on the outstanding balance of the loan. These other payment contracts calculate interest on the original principal balance, then lock the borrower into the full contractual payments, even if the funds are paid back in their entirety the very next day. We hope that this simple tool can help business owners make better decisions going forward.”

Fundation’s simple interest loan calculator can be found on Fundation’s website in its “Become and Expert” section at http://fundation.com/become-an-expert/.

Fundation Group LLC is a technology-empowered direct lender that delivers small balance online commercial loans. The firm provides fixed rate loans up to $500,000 using its own capital. Fundation fills a void in the small balance commercial loan market by offering loans to businesses that banks are unwilling or unable to lend to, and those that desire a simplified process, with capital on terms that will enable them to grow. Fundation’s technology streamlines the loan application process by collecting third party data and automating the majority of the credit review process.
###

Share article on socal media or email:

View article via:

Pdf Print

Contact Author

Tori Lewis
Fundation Group
+1 (646) 661-1962
Email >