Money Matters

Business loan calculator (with amortisation schedule)

With this business loan calculator, payments and costs are easy to assess at a glance. Read our guide for everything you need to know about business loans.

31 October, 202518 min read Share

How much will a business loan really cost your company, given the interest rate and fees? Can your business’s monthly revenue support the repayment terms?

When you’re considering a business loan, you need to know how to calculate the actual cost of the loan and assess the repayment schedule to make sure the funding meets your needs and aligns with your finances.

In this article, we cover the essentials of business loans, including common types, alternative funding options, and what to expect in terms of interest and fees.

We’ll also provide a business loan calculator that can do the maths for you, making it easy for you to compare different financing types and find the best option.

Here’s what we’ll cover:

Business loan calculator

Note: this calculator is for illustrative purposes only.

All banks, financial institutions, and lenders will have their own methodology as to how interest is calculated.

This business loan calculator can help you evaluate financing options or identify your optimal loan terms.

Here are a few ways to use this tool:

• Determine your monthly payment given the loan amount, annual percentage rate (APR), fees, and term. Factor the payment into your budget to see how it will affect your cash flow.
• Calculate how much you’ll repay over the course of the loan, including total interest. Get a better sense of the real cost of borrowing money and make an informed decision about financing.
• Assess the total cost of the loan including principal, interest, and fees. Compare funding opportunities against each other to find the smartest option for your business.

How to use the business loan calculator

To use this free business loan calculator, input the following information:

• Annual Percentage Rate (APR): the annual cost of borrowing, expressed as a percentage. This is the percentage that the financial institution charges for lending the funds; it’s the interest rate plus extra charges such as arrangement fees and broker’s fees.
• Compound frequency: how often the lender calculates interest and adds it to the loan principal (original amount lent). Common frequencies include monthly, quarterly, or annually.
• Loan term: the total duration of the loan (typically in years or months) over which repayments are made. 
• Payment frequency: how often the borrower is responsible for making a loan payment.
• Arrangement fee: a one-off fee charged by the lender for setting up the loan, which is typically deducted from the disbursement.
• Other fees: late payment fees, prepayment fees, and other additional fees. (See the full list below.)

With this business loan calculator, payments and costs are easy to assess at a glance.

Based on your input, the tool displays the regular loan payment as well as the total payment amount, total interest, total interest and fees, total loan cost, and amortisation schedule.

What is amortisation?

Amortisation is an accounting method that has two meanings.

Amortisation of assets refers to writing down the cost of intangible assets spread over the predicted useful life of the asset.

It reflects the cost of an asset, such as software, over the period of time it’s expected to be used.

Amortisation and depreciation are recorded as expenses in the income statement, and their cumulative amounts are reflected as adjustments to asset values on the balance sheet.

Amortisation of loans (which is relevant here) systematically means reducing the value of a loan over a period of time.

Basically, reducing debt through repayments.

An amortisation table reflects the reduction of the debt by showing a schedule of the regular principal and interest payments and the decreasing loan balance.

You can use our business loan calculator with amortisation schedules to track your repayment progress.

It breaks down your loan balance, payments, interest, and principal throughout the repayment term.

Types of business loans

As a business owner, you could be eligible for a range of financing options depending on your trading history, business structure, turnover, and borrowing needs.

Use this list to consider common types of business loans available in Ireland.

Term Loan

A term loan is one of the most common financing options for businesses of any size.

The lender delivers the loan amount as a lump sum.

Then, you pay off the loan with interest over a set period of time.

Term loans are ideal for businesses that need fixed payments to maintain steady cash flow during the repayment period.

And since term loans tend to have comparatively low interest rates, this loan type is one of the most widely affordable options.

However, getting approval for a term loan may require collateral or a personal guarantee.

And qualifying for the lowest interest rates often requires a strong credit score and multiple years in business.

Equipment financing

Equipment financing is a type of loan for purchasing business equipment like manufacturing systems, commercial vehicles, or agricultural equipment.

The equipment itself usually acts as security for the loan.

Many lenders offer both equipment loans and equipment leases.

You own the asset and repay the cost over time (plus interest).

Leases let you finance the equipment for a pre-set period before returning the equipment to the lender or often with the option to buy it at the end.

While this type of financing can be a good option for buying new equipment, it doesn’t work for other types of purchases.

This funding is typically restricted to the purchase or lease of tangible business assets and may require a deposit or VAT to be paid upfront.

Invoice factoring

Invoice factoring is a method of selling unpaid invoices to a lender for them to take the responsibility for collecting payment.

You get a lump sum that generally equals between 70% and 90% of the original invoice value.

When the customer pays the invoice, the lender forwards you the remaining amount less the factoring company’s fee.

Because invoice factoring doesn’t require a credit check, it doesn’t negatively affect your credit score.

Plus, it gives you access to funds faster than many traditional loans, which can help improve and manage cash flow.

However, this financing option can get expensive quickly. Lenders typically charge fees by applying a factor rate to the invoice value, increasing the cost when your customers take more time to pay.

Invoice financing

Invoice financing also uses unpaid invoices as leverage.

But instead of purchasing invoices, lenders use them as collateral, providing a cash advance of up to 90% of the original value.

Customers pay the invoice directly to you, and you’re responsible for repaying the principal and fees to the lender.

Like invoice factoring, invoice financing can give you quick access to funds. It’s helpful for addressing cash flow gaps.

However, invoice financing can be pricey, as lenders generally charge both interest and credit management fees.

The creditworthiness of your customers is a key factor in determining the terms of the loan.

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Disclaimer: Invoice factoring and financing are generally not regulated consumer credit products in Ireland. Businesses should review contract terms carefully before entering an agreement.

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Business credit card

A credit card gives you access to a revolving line of credit.

It’s called ‘revolving’ because, as long as you repay the borrowed amount on schedule (in full or in part), the facility automatically renews—you don’t need to reapply to get the same terms.

You can use it as needed to borrow funds, pay back the balance, and draw on the line of credit again.

You only pay interest on the outstanding balance – often interest-free if repaid in full each month.

But if you don’t, interest adds up and credit cards are far less affordable.

Plus, the annual percentage rate (APR) can increase over time, causing you to pay more for financing.

Credit cards give business owners a quick and convenient way to access funds for purchases or cash advances.

They’re ideal for purchasing equipment or inventory, and some offer rewards or cash back on purchases.

However, APR rates can be high and balances can accumulate quickly if not managed carefully. Missing payments or exceeding limits can also affect your business credit score.

Business line of credit

A line of credit allows your business to draw from a pool of funds that has a pre-set limit. It offers flexible access to funds up to a pre-approved limit.

Similar to a credit card, you can borrow from the line of credit, repay it, and withdraw funds again without reapplying but typically with lower interest rates and no rewards.

You owe interest on the funds you borrow rather than on the full line of credit.

A range of lenders—traditional banks, online banks, and alternative lenders—offer lines of credit.

Lines of credit are usually unsecured, but lenders may still require a personal guarantee or charge arrangement and renewal fees.

They are ideal for managing unpredictable expenses or seasonal fluctuations in income, but can be more expensive than term loans when used long-term.

Many charge fees for maintenance or withdrawals, which add to the cost of the loan.

Merchant cash advances

A merchant cash advance lets businesses use future sales as leverage.

You can get a cash advance based on the amount of debit and credit card sales you typically generate in a month.

Merchant cash advances give you access to capital quickly, and they don’t require collateral.

They can be a reasonable option during a cash flow emergency.

However, merchant cash advances can be costly. Lenders charge a factor rate, which they set as an upfront flat rate.

Many also charge high arrangement fees for the convenience of a cash advance.

Commercial property loan

A commercial property loan is a term loan designed specifically for commercial spaces. 

You can use this type of loan to buy or refinance premises for your business—such as an office, shop, warehouse, or industrial unit.

You purchase or lease property and then repay the loan and interest over a pre-set time period.

Commercial property lenders typically offer comparatively low interest rates. Many also have lengthy repayment terms, typically 5-25 years, but also often require a deposit—often 20% or more.

Similar to a mortgage, a commercial property loan takes time for the application process, involving legal, valuation, and arrangement fees.

Many lenders require a detailed loan application and a property inspection, making this option less ideal for quick funding.

Microfinance Ireland (MFI) loans

MFI is a government-backed not-for-profit lender.

It offers unsecured loans to small businesses and sole traders who may have difficulty accessing traditional bank finance.

Micro-enterprises (fewer than 10 employees and turnover under €2 million) based in the Republic of Ireland can borrow from €2,000 up to €60,000.

These loans are for working capital, equipment, or business expansion.

Strategic Banking Corporation of Ireland (SBCI) loans

SBCI is government-backed and partners with a range of banks and non-bank lenders to provide low-cost, government-supported loans to small and medium-sized enterprises (SMEs) in Ireland.

These SBCI-backed loans are designed to improve access to finance for both startups and established businesses, particularly in areas like working capital, asset purchases, and sustainability investments.

SBCI does not lend directly to businesses.

Instead, it provides funding to on-lending partners, who then offer loans to eligible SMEs under specific schemes.

Growth and Sustainability Loan Scheme (GSLS)

This flagship SBCI programme allows eligible businesses—including farmers and fishers—to borrow between €25,000 and €3 million for various purposes, including investments in assets, growth, research and development, resilience, and innovation.

Loans can be used for working capital, refinancing, or purchasing equipment and assets. Repayment terms range from 7 to 10 years, with competitive interest rates and flexible conditions.

Green Transition Finance

This scheme supports businesses established in an EU Member State and operating in the Republic of Ireland, that are transitioning to more sustainable operations.

Loans are available to SMEs with fewer than 250 employees and an annual turnover of €50m or less.

Small Mid-Caps with fewer than 500 employees that are not SMEs may also be eligible. 

It offers flexible loans from €500,000 to €5,000,000 for energy efficiency upgrades, renewable energy systems, and other green investments.

Home Energy Upgrade Loan Scheme

Although focused on private homeowners, this scheme may be relevant for small businesses and sole traders operating from residential premises.

The Home Energy Upgrade Loan Scheme provides low-cost finance for home energy upgrades and energy efficiency improvements.

You can borrow from €5,000 to €75,000 for a term of up to 10 years, with significantly lower interest rates than what’s typically available from traditional lenders.

Invoice financing and asset finance

SBCI can also support businesses with invoice financing, leasing, and hire purchase through its lending partners—helping businesses manage cash flow or acquire essential equipment without large upfront costs.

Are there other sources of funding for a business?

If loans aren’t suitable for your business, you have several other ways to secure funding.

Some of the most common options include overdrafts, venture capital, crowdfunding, and personal loans.

Overdraft

An overdraft happens when your business bank account has insufficient funds to cover a transaction, but the bank allows your business to continue withdrawing funds—even when the available amount is below zero.

Some banks offer overdraft protection, meaning they automatically pay overdrafts.

You repay the overdrawn amount plus fees and interest.

Similar to a line of credit, overdrafts can serve as an instant source of funding.

Overdrafts are flexible, short-term solutions for managing cash flow but are not ideal for long-term borrowing due to variable interest costs.

Be aware that exceeding your agreed overdraft limit may result in additional charges or declined transactions.

Personal loan

A personal loan is financing that you apply for as an individual rather than as a business.

It can be a smart option for startups and new businesses that have no borrowing history, which is a requirement for many lenders.

However, personal loans often have lower maximum amounts, so they only work in limited situations.

And if your business is unable to repay the loan, your personal credit suffers.

Venture capital

Venture capital (VC) is private equity that funds startups with potential for above-average growth.

VC firms are backed by limited partners, and when they invest in your business, they gain an ownership stake in the business in return.

Most startup businesses raise venture capital in a series of funding rounds, each aligning with the company’s stage of growth.

Ireland has a growing venture capital ecosystem, especially in tech, medtech, and fintech sectors.

VC firms like Frontline Ventures, Delta Partners, and Atlantic Bridge are active in Ireland.

Government-backed initiatives like Enterprise Ireland also co-invest with VC firms.

While venture capital can contribute to incredible business growth, raising this kind of funding is a complex and often slow process.

It also dilutes your ownership, and it can take away some level of control over the business.

Crowdfunding

Crowdfunding allows a large number of individuals to contribute money toward your business’s financing needs.

Instead of repaying contributors, your business might consider giving a product or service to each individual.

This funding option allows businesses of all sizes to raise funds while using the power of social media to generate interest in the business’s growth.

Most crowdfunding websites charge a platform fee (a percentage of the amount raised, typically 3-8%), as well as payment processing charges. 

Commonly used crowdfunding platforms such as Kickstarter.

What business loan fees will I have to pay?   

Each loan type has its own set of fees and borrowing costs. These typically include arrangement fees, interest, and various charges depending on how the loan is structured.

Input them into our commercial business loan calculator above to get an accurate assessment of the loan’s actual cost.

Term loans

Term loans generally include an arrangement or origination of 0.5% to 2%, which covers the loan paperwork and application.

The lender usually subtracts the fee from the amount you receive.

MFI loans

There is no arrangement or application fee when you apply for an MFI loan.

The loan interest rate is 6.5%—or 5.5% if you apply via Local Enterprise Office.

There are no early repayment penalties with a MFI loan, making them a flexible option for small businesses.

Commercial real estate loans

You’ll typically need to pay an arrangement or origination fee in the range of 0.5%-1.5% of the total loan amount to cover the cost of processing and setting up the loan.

You’ll also need a professional valuation or appraisal, which can cost €500 to €2,000, depending on the property type and location.

If you’re buying an older or development property, there may be survey or inspection fees.

Both the lender and borrower will incur legal costs, which can range from €1,000 to €5,000+ and if you’re using a commercial finance broker, expect to pay 1%-2% of the loan amount for their services.

Bear in mind that some lenders charge a fee if you repay the loan early, especially if fixed interest terms are in place.  

Lines of credit

With lines of credit there will often be an annual facility fee of around €100-€250.

Some lenders also charge a small drawdown fee each time you access funds, and a monthly or quarterly maintenance fee to keep the facility open.

Business credit cards

Business credit cards generally have annual fees that can cost from €30 to €150 per year.

Most card issuers also charge late payment fees (around €15- €25), cash advance fees (around 1.5%-2.5%, and balance transfer fees.

Credit card terms vary widely. Always check the card’s representative APR and fees schedule.

Equipment financing / asset finance

Equipment or asset financing usually includes an arrangement fee of around €100- €500.

Some agreements also include a balloon (final lump sum) payment, and early settlement fees if you if you pay off the lease or hire purchase early.

Invoice financing / factoring

Invoice financing and invoice factoring usually involves a service fee of around 0.5% to 3% of the invoice value.

You might also have to cover a discount rate (an interest-like fee charged on the advanced amount, often 1.5% to 3% per 30 days), and credit management fees for debtor management services.

Merchant cash advances

Merchant cash advances are not traditional loans. Instead of an interest rate, they use a fixed repayment cost known as a factor rate.

For example, a factor rate of 1.2 means you’ll repay €1.20 for every €1 borrowed

There are no application fees, setup fees, or early repayment penalties, making them a flexible option for small businesses.

What are the typical terms for a business loan?

Business loan repayment terms can last anywhere from a few months to a few decades, depending on the type of finance, the lender, and the borrower’s circumstances.

While borrowers can often negotiate them to some extent, each financing type has its own standard term lengths.

Typical repayment terms for business loans include:

Loan type	Repayment terms
Term loan	1-5 years (up to 10 years in some cases)
SBCI-backed loans	1-10 years (up to 15 years in some cases)
MFI loans	3-5 years
Commercial real estate loans	Up to 25 years
Line of credit / overdraft	0.5-2 years (renewable)
Asset finance / equipment financing	1-7 years
Invoice financing / factoring	30-90 days
Merchant cash advance	6-12 months
Flexible loans	Up to 12 months (repayments vary with cashflow)

Business credit cards typically operate on a monthly billing cycle (28–31 days).

After the statement is issued, you usually have 15-25 days to make a minimum payment.

What business loan interest rate should I expect to pay?

Business loan interest rates depend on several factors including loan type, length of time in business, and business credit score or history.

They can also vary over time.

As a rough guide, average business loan interest rates are:

Loan type	Interest rate (typical range)
Term loan (bank)	5.95%-7.45%
SBCI-backed loans	As low as 2.19% (with temporary reductions)
MFI loans	5.5%-6.5%
Commercial real estate loans	5%-7.5%
Line of credit / overdraft	7.85%-9.5%
Business credit card	14.5%-22.9% APR
Asset finance / equipment financing	6%-9.5%
Invoice financing / factoring	1.5%-3% per 30 days (plus service fees)
Merchant cash advance	1.1-1.5% factor rates (equivalent APRs vary widely)

Sources cross-referenced from AIB, BusinessLoans.ie, Microfinance Ireland, and SBCI.

How much do business loans offer?

The amount you can borrow will depend on whether the loan is secured (backed by collateral) or unsecured, as well as the type of financing you choose, and your business revenue, creditworthiness, and time trading.

In some cases, the type of lender can also affect the total loan amount.

Here’s a breakdown of the amounts you may be eligible to borrow:

Loan type	Loan amount (typical range)
Term loan (bank)	Up to €300,000 (unsecured); higher with collateral
SBCI-backed loans	Up to €1 million (depending on scheme and lender)
MFI loans	€2,000- €50,000
Line of credit / overdraft	Up to €100,000 (renewable)
Asset finance / equipment financing	80%-100% of equipment value
Invoice financing / factoring	Up to 90% of invoice value
Merchant cash advance	Up to €500,000 (typically 50%-150% of monthly card sales)
Flexible loans (revenue-based)	Up to €200,000 (based on monthly turnover)

Unsecured loans are typically capped at €300,000–€500,000.

Invoice and merchant finance are based on your receivables or card sales, not fixed limits.

Government-backed loans (via SBCI or Microfinance Ireland) offer more accessible funding for startups and small businesses.

Sources cross-referenced from BusinessLoans.ie, Swoop Funding, and Financefair.

Can I fund my business with my own money as a loan?

Yes, you can loan money to your own business in Ireland—whether you’re a sole trader or operating a limited company (Ltd).

However, the process and implications differ depending on your business structure.

For sole traders

You and your business are legally the same entity.

Any money you put into the business is considered a capital contribution, not a loan.

You can withdraw funds freely, but you won’t earn interest on your own money.

For limited companies (Ltd)

A limited company is a separate legal entity.

You can loan money to your company as a director’s loan.

This must be properly documented with a loan agreement, including:

• Loan amount
• Interest rate (if any)
• Repayment terms

You can charge interest, but it must be at a commercially reasonable rate and declared as income on your personal tax return.

If the company fails to repay the loan, you may lose the money—so it carries financial risk.

Important considerations

If the loan is not repaid or documented properly, it may be treated as a capital injection (equity), not a loan.

Loans from non-owners that are not repaid may be treated as taxable income to the business.

Always consult an accountant or tax advisor to ensure compliance with Revenue and Companies Act 2014 regulations.

Final thoughts

With a well-rounded understanding of the available options, you can make an informed choice about the best loan type for your business.

Use our business loan calculator to assess payment and loan costs, compare different offers, and choose the financing that best fits your needs and goals.

To simplify on-time loan repayment, Sage offers accounting software that makes it easier to handle expenses, automate billing, and improve cash flow control.

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This article was verified by a UK-based Certified Public Accountant (CPA).

Financial information can change frequently and we recommend you always seek advice from a qualified CPA, tax professional, or financial advisor before applying for a loan or funding.

Rates and loan fees listed in this article were correct at the time of publishing but can change on a regular basis.