Does the thought of a running debt keep ticking like a clock in the back of your head? Or, do you find yourself devising an approach of paying off debt early? If yes, then you are just like many other business owners who feel weighed down due to a hefty loan taken for business.
If you are looking for ways that allow you to get rid of your loan at the earliest, then look no further. Below are a few tried and tested tricks and tips that will solve your predicament of how to pay off a business loan faster.
Make biweekly or partial payments
If you pay every two weeks in partial payments, instead of in full, you will make an extra payment every year. And, not only is the principal amount reduced, but you also pay a little less interest than the actual rates.
Like a money lender checks your business loan eligibility criteria, make sure to weigh its policies before signing up as well. Most money lenders offer the flexibility to make additional payments at any time during the month. Take this opportunity and make the most out of it by overpaying to your current balance. So, you make quicker payment while saving your hard-earned money in the process.
Additional Read – How to Calculate EMI for Business Loan Effectively
Refinancing is the way out
Mostly, borrowers resort to refinancing when they find better deals from another financial institution. Whatever the reason may be, refinancing allows you to round up your remaining loan amount and tenure under new terms.
You can opt for a shorter loan term when you switch. In this way, you can pay higher monthly instalments and eventually, save some money on interest. However, you must use a business loan calculator beforehand to gauge the feasibility of refinancing your existing loan.
Autopay helps you save
By signing up for autopay of your business loan EMIs, you can receive a discount or concession on interest. So, by letting the financial institution deduct the repayment amount right from your savings account, you can alleviate some repayment amount, however trivial it may be.
Increase the EMI amount every month
This one is an effective way to pay off the debt early. If and when you have the funds and financial stability to ward off the loan quickly, proceed by increasing the EMI amount by a certain percentage. You can tweak and recalculate the repayment amount through the business loan EMI calculator conveniently.
Additional Read – How to use the new innovative Business Loan Calculator
When you have the means to make early repayments, it is better to go ahead as you may end up benefiting from lower interest rates and shorter repayment terms. When you associate with Tata Capital, our business loan EMI calculator will enable you to make informed decisions concerning the monthly instalments.
Tata Capital offers an attractive business loan interest rate, along with rapid documentation and processing. You can enjoy customisable loan offers and EMI plans that align with your business needs for stress-free repayments. If you are willing to apply for business finance, get in touch with us today for the best-in-class financing experience!