| Step 1 : | Enter the period in months that you expect to turn your stock over (between 1 & 6 months). |
| Step 2 : | Enter the amount you wish to borrow to purchase this stock. |
| Step 3 : | Enter the profit margin in % you expect to make when you sell this stock. |
After entering these variables, the result in Term 1 will give you an indication of what your profit will be after you sell your stock in the initial turnover period and after interest, and the loan is repaid at the end of this nominated term.
The other terms which are below Term 1 takes into account what your future profit will be if you didn’t repay this loan but instead re-invested your initial capital and profits for a full 12 months. From this, you can see how your sales and profit multiply yet your loan amount and interest charges remain the same.
No matter whether you are after short term or long term finance, this will help you understand that this finance option is suitable for both and can help you enjoy higher sales and profits.
| SUMMARY | Result if income is re-invested over 12 months | ||
|---|---|---|---|
| Total amount invested and re-invested | |||
| Interest charged for Period | |||
| Return after sale of goods | |||
| Gross Income After Interest | |||
| Gross Profit Margin | |||