The calculations and results can be used as a guideline which is indicative and does not include any fees or charges by the lender. The repayment is determined after the assessment of your application.
Some lenders use a factor rate to determine the repayment on an unsecured business loan
Calculating the interest rates of unsecured business loans using a factor rate
If your business were to borrow $50,000 over 12 months at a factor rate of 1.20%
1.20 multiplied by $50,000 totals $60,000 (This is your total payback amount)
On average there are 20 business days per month.
20 business days multiplied by 12 months is 240 days (Payments are not deducted on weekends)
$60,000 divided by 240 equals $250
$250 is your daily repayment (excluding any fees and charges).
Multiplying $250 by 5 days gives your weekly payment of $1,250