Planning financial decisions can feel daunting for small business owners and entrepreneurs. Tools like ATB’s Business and Ag Loan Calculator are designed to simplify the process. To understand how this tool can help, we spoke with ATB Entrepreneur Ecosystem Strategist Cliff Turner about its benefits, use cases, and how it can fit into your broader financial strategy.
Q: What makes the Business and Ag Loan Calculator a helpful tool for business owners?
Cliff: "The Business and Ag Loan Calculator provides a straightforward way to estimate loan payments. It’s useful for businesses at any stage—whether you’re considering buying equipment, planning an expansion, or just looking to get a handle on your cash flow. It gives you a clear picture of what your loan payments might look like and how they fit into your overall budget."
Q: Can you give a real-life example of the tool’s use?
Cliff: "Let’s say you’re a landscaping company that wants to expand, and you’re considering adding a fourth truck to your fleet. The calculator can help you figure out if the truck will pay for itself month by month. By plugging in the numbers, you get a good sense of how the loan payment will impact your cash flow and whether it’s a sound investment. Couple this with ATB’s Cash Flow Forecasting Tool and you can run scenarios of how the associated costs will compare to revenue generated."
Q: How does the calculator tie into other ATB resources?
Cliff: "The calculator works well alongside the Cash Flow Forecasting Tool. It’s great for newer businesses to create financial projections for a business plan. But even for established businesses, it can help you evaluate investments. For example, if you’re buying equipment with a long lifespan, the calculator can help you experiment with amortization periods to find a balance between paying off the loan and generating positive monthly cash flow. The calculator is most useful for term loans, such as those used for equipment purchases. While it’s not typically designed for lines of credit, it can help if you plan a one-time purchase with regular payments.”
Explore ATB’s templates, tools and resources for small businesses.
Q: What’s one tip you’d give to business owners using the calculator?
Cliff: "Think about how the loan terms align with your cash flow needs. For instance, you might decide to pay off a loan faster to save on interest or extend the term to keep your monthly payments lower. The calculator makes exploring these options easy, so you can figure out what works best for your business."
The Business and Ag Loan Calculator is a simple, practical tool for small business owners and entrepreneurs to explore loan options, estimate payments, and plan purchases or investments. Try it today and discover how it can help you take your business to the next level.