01-18-2013 03:22 PM - edited 01-18-2013 03:45 PM
I want to take credit line from my bank(chase)
just spoke with my business banker and she said that i can count on 10%-15% APR.
I am looking to get 30K credit line.
How do the interest and payments calculated?
Let's say i am aproved for 30K with 12% APR.
On Feb 1st i spend ALL this money(30K) on inventory i want to buy.
What will be the inetest and payments? The intesest won't be 30,000*0,12 every month right? It will be 30,000*0,12 TOTAL for a year, right?
And if i pay this within 6 months it will be even less. Basically total amount i will end up paying will be 30.000K i took + around 2.2K in interest - does i calculate it right?
It's totally new for me, so please explain in details
Thx a lot! bTycoon
p.s. i allready have 2 business credit cards(chase and amex), just want to get credit line(expect to pay it withing 6 months most) for inventory.
01-18-2013 10:50 PM
10-15% is the Annual Percentage Rate so to make it easy lets say the apr was 12% and you charged on average 10k per month...would you pay $1200 per month interest? No you would pay 12%/12 months so 1% per month. Which easy enough is only $120 for for 10k balance at the end of the month.
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