Term Loan Calculator
Venture-backed startups often raise Venture Debt to extend runway alongside an equity financing. These loans provide non-dilutive growth capital that preserves ownership and control. They can take various forms (usually a Term Loan or Line of Credit) and are offered by specialized teams within a handful of banks and dedicated venture debt funds.
In the case of a Term Loan, a company can borrow funds over a specified period of time at a floating interest rate. The loan may be broken into multiple tranches with different draw criteria and principal repayment schedules. The loan will often be accompanied by various fees in the form of cash and equity (i.e., a small percentage of warrants).
The S3 Ventures Term Loan Calculator computes the total cash costs of a Term Loan and its impact on monthly cash flows. Upon inputting the loan terms and timing assumptions, the calculator generates a monthly payment schedule for principal, interest, and fees.
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Last updated: 04-22-2024