Credit Line vs. Loan Amortization Calculator

Is your business growing or expanding? This tool will help evaluate the better source of financing: an amortizing loan or line of credit.

An amortizing loan is fully disbursed when you close the loan. It is an ideal product for financing if you prefer the discipline and concept of consistent, regular payments to meet your debt obligations. Additionally, you often have the ability to lock in an interest rate. However, principal and interest payments may not match the cash flows of your business. Another item to consider is you may have to obtain another loan if you need additional funds. Another loan may require another approval process and additional loan fees.

A line of credit is a form of revolving credit that gives you flexibility to draw on the line repeatedly if you pay down the balance. You can also make interest-only payments on the credit line to match the cash flows of your business. This tool assumes minimum monthly payments are made over the course of the loan and line of credit respectively.