Representative example: Ethan buys an RV park
Ethan is a Campground Manager at a small provincial park. The government has recently rezoned some of the parkland and has decided to sell several acres that are currently being used as a 25-lot RV park. Ethan wants to buy the land to keep the RV park up and running and to hold as a personal investment. The government is eager to offload the property and has listed it at $479,000.00.
After cashing in on a chunk of his personal savings and finding an investor who’s willing to contribute $195,000.00 to the business, Ethan still finds himself $245,000.00 short of the money he needs. He applies for a business loan from an online lender and is approved with competitive terms, thanks to his great credit score and the solid financial history of the RV park. Ethan signs the loan agreement and submits the required documentation. Soon, the funds are soon deposited into his bank account.
|Cost of buying a small RV Park||$479,000.00|
|Loan type||Business loan (term loan)|
|Interest rate (APR)||7.99%|
|Loan term||5 years|
|Total loan cost||$297,992.40|
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.