Cedarland Lending, a small-business funding service in Roswell, NM, offers this loan payment calculator for buyers pricing a business purchase. Enter the amount you would borrow, an annual rate and a term; it shows the monthly payment, total interest and total paid. Working out the loan amount from a price and down payment is a by-hand step explained below.
What this calculator does
Under the hood it is an ordinary amortizing loan calculator. Given an amount, an annual rate and a term, it computes the level monthly payment, the total interest over the term and the total paid back. It does not compute a down payment, a valuation, a balloon payment or whether a partner would offer the loan.
Step one by hand: the amount to enter
Start from the purchase price and subtract what you will pay in cash and anything the seller will finance. What remains is the loan amount to enter.
Illustrative only, with invented figures: a $300,000 price, a $60,000 down payment and $30,000 of seller financing leaves $210,000 to enter as the amount. Run the calculator, then add the seller-note payment by hand to see the total monthly cost.
Testing a payment against the business
Compare the monthly payment with the business's own cash flow from the seller's records. If the payment would take most of the monthly profit, the price, the term or the down payment needs another look before any partner sees the request.
- Try a few terms to see how the payment and total interest move
- Try a higher and lower rate, since the actual rate comes only from a partner
- Add the seller-note payment, if any, by hand
Buying a gas station or a mechanic shop
Acquisitions in Chaves County, NM often involve gas stations and convenience stores and auto repair shops, among others. Each industry page lists what partners usually review for a purchase in that trade, and term loans explains the structure most purchases use.
Reading the result
Total interest grows quickly with the term: a longer term lowers the monthly payment but raises what you pay overall. Note both figures for each scenario you try, and bring the one you prefer to the conversation with Cedarland.
Other tools and guides
For zoning, licenses and local help, see the guides page.
By Cedarland Lending · Updated