In reality, most lenders will still require borrowers to pay the full amount of interest, even if the loan is paid off early.
At IOU Financial, we offer a different approach that actually rewards our borrowers for early loan payoff. Unlike most other lenders, our simple interest process calculates the interest due by the loan’s principle balance that is outstanding each day. Therefore, as the loan amount decreases, so does the interest payment. It’s that simple!
To help small business owners plan out their loan repayment, and as a result, save money, IOU Financial has created a new loan savings calculator that provides a complete picture of the total cost of a loan, as well as options for paying it back in the most cost-effective time frame possible.