How do I calculate a monthly finance charge?
marbledog asked:
I’m starting a small business, and I would like to offer financing to my customers, but I’m unsure of how to calculate monthly finance charges based on APR.
I’m starting a small business, and I would like to offer financing to my customers, but I’m unsure of how to calculate monthly finance charges based on APR.
For instance, if I financed $700 at 20% APR over 24 months, how would I calculate a customer’s monthly bill?
Any help is appreciated! Thanks.
Tags: Finance Charge, Finance Charges, Starting A Small Business
September 7th, 2009 at 1:44 am
I’m not entirely sure.
September 7th, 2009 at 5:14 pm
Without intending to sound rude, if you don’t know how to figure this basic operation of financing, you shouldn’t be in the financing business.
Asking strangers on the Internet to educate you is just asking for trouble; most likely bankruptcy.
September 9th, 2009 at 12:04 pm
Right…. heres my best guess(es)…
1 - Employ the services of a financial advisor
2- Employ the services of a financial loan company to do it third party and i would imagine you get some sort of commission from every loan you run through them.
3- (this one is more likely to be a winner) Get some cash (hookey money/filthy lucre/moolah/bunse… call it what you like), launder it thoroughly through an unlicenced gambling den and also employ three suitably malicious and aggressive chaps with shaved heads called Smasha, Diggsy and Nigel ‘horse-killer’ McVey.
Then, heres the clever bit, lend the loot out to the needy, give an extortionate rate of inflation, hastily thought up on the spot, and if they default on the payment terms or deadline then send the three afore mentioned spritely fellows round to their house and threaten to screw the individuals pelvis to a cake-stand.
I think i know which one is a proper good earner.
Hope this helped!!
Good luck.
January 7th, 2012 at 3:44 am
I always was interested in this topic and stock still am, thanks for posting.
February 2nd, 2012 at 1:19 am
Time and time again I think about these problems. As a matter of fact it was not even a month ago that I last thought about this very thing. Frankly, what is your thought though?
February 5th, 2012 at 5:10 am
Have you noticed the news has changed its approach recently? What used to neve be brought up or discussed has changed. It’s that time to chagnge our stance on this though.
February 9th, 2012 at 2:04 pm
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