Every lender does things a little differently. Some work out interest monthly, some daily. Some lenders provide a flat rate, others an APR.
The thing is, underneath it all you have a customer who simply wants to know what the ongoing cost of their finance is.
The Lime Consultancy recommendation is that you run a few figures yourself, get an idea of what you could be paying. Then, talk to the lender when you are a little more informed. It is part of thinking about things before you apply for lending.
Sometimes this is easier said than done.
It is very rare that any lender will present you with a breakdown of capital and interest on a monthly basis. Which is strange given that interest is a P&L cost, so you need to know what is what.
We have a simple spreadsheet that will break down interest and capital costs on a monthly basis. You can –
- Amend the loan repayment amount
- Amend the loan amount
- Change the term
- Change the interest rate
This means that you can fully customise and fiddle around with the various elements.
Having this flexibility means you can better plan, budget for future interest rate rises and more easily compare like with like.
Better still, the spreadsheet is completely free and provided with Lime Consultancy’s compliments.
Click the link here to download – loan_amortisation_schedule
What If I Can’t Work It Out?
The spreadsheet should be fairly easy. That said if you have any queries whatsoever then please give Lime Consultancy a call on 01293 541333. The team will answer any questions you have and talk you through.
If you have any comments about the free loan repayment calculator then please click the reply button above, or contact Lime Consultancy via the website here.
By David Farmer