That a company needs money to be able to walk around and to grow is no secret. Sometimes it may be that you need a small extra supplement at the checkout, or that you may want to have their incoming money faster than the customers pay their invoices. There are different types of corporate loans that can be a good help, for example if you are going to make an investment in the company, if you have temporary liquidity problems, or if you are a newly started company that needs help to grow.
Who lends money to companies?
Today, there are many options for a company that wants to borrow money. The lenders range from large banks to small companies, and new ones are added in a battle stream. The competition for borrowers is great, and this means that those who lend money want to sharpen their offers – perhaps with a low interest rate, or by not requiring any security. One should, however, be aware that what feels attractive in the theory may not always be so good in
practice. Secondly, there may be conditions in the fine print, which may be unnecessarily high fees that weigh up for low interest rates. But it can also be that the loan simply does not fit the company, or may not suit the way the company wants to use the money.
It is important for your own security to check the lender before taking a loan. Although any rogue players who pop up usually disappear quite quickly, it is still worth looking at, for example, whether the company is new or has been around for a long time, if it is approved by the Swedish Financial Supervisory Authority and if there are any negative reviews on the Internet.
Good terms and interest rates
The popular comparison site now also offers business loans. Make an application on business loan and see what they can offer you and your company. It does not cost anything to make a price inquiry and you do not commit to anything when filling in your information on the site. We presents a list of what interest rates and conditions the various banks can offer you.
What to think about before taking a business loan
The most important thing when you are borrowing from your company is that you take a loan with conditions that are suitable for the purpose for which the money is to be used. If you do not, the loan can prove to be an unnecessarily large cost. If, for example, you want to take a loan to invest in new machines, that is, a long-term investment, then you should not choose a loan where the gun is based on the money coming in quickly and being repaid quickly.
Since it can take time for the investment to yield returns, instead you need to find a loan with a low interest rate and a long repayment period. On the other hand, you need to have the money quickly, perhaps because you have to sell a seasonal product there
The market is such that you can get a quick profit, so you may be earning a shorter repayment period. Other important questions to ask yourself before taking a loan are:
- Is it the right time to take a loan?
Sometimes it can be attractive to grow fast, and sometimes it is also necessary. It may turn out to be a very successful choice to take a loan to invest in the company, but one must always think about the future. Sometimes it may be worthwhile to let the company stand on its own feet and grow with its own resources, albeit somewhat slower.
After all, the loan must be repaid, with interest and fees, so it is important that you
has a realistic plan.
- Have I thought about this?
Even if you can find yourself in a situation where you need money quickly, you should never stress a business loan. When you are stressed you can sometimes make less good decisions, and it is important not to fall into traps that may prove to be unnecessarily costly. You should always spend some time comparing, checking conditions and finding the best loan option. Maybe there is another type of business loan that fits the situation better?
- How much should the company borrow?
Always think about how the money should be used so that they are really used to the right things. If one is tempted to take a small loan to meet the month’s expenses, it is easy to stand there next month and need to borrow again. It is important that you have a plan for how much money you need, what they will be used for, and that you will actually be able to afford to repay the loan then. A loan that fits the purpose and a lender whose terms fit the company may be just what is needed
that the business should flourish. And in the same way, the wrong choice of lender and a loan that does not benefit the company can be the drop that causes the cup to run out of bankruptcy. Therefore, always be sure that you take a loan that gives you good conditions to succeed with what you want out of the loan.
What the lender / bank looks at in its assessment
Depending on the lender, it takes a lot of money to borrow money. Sometimes neither security, business plan nor budget is needed, but the lender can still look at things like the owner’s finances and the company’s history. Sometimes the lender also wants to know what the money should be used for. If you borrow from a bank, for example, the requirements are usually higher. For example, things that banks and other lenders with higher demands look at in their assessment are:
- Owner of the company
For example, the lender can look at experience, personal finances, references and education.
- business Plan
A good business plan is important, and it should be both detailed and realistic.
- Accountant or finance assistant
It is always easier to borrow money if the lender sees that the company gets professional help with the economy.
If the company can offer high security, the lender is often more inclined to lend money.
- Balance sheet, financial statements and declaration
This may be relevant for the lender to look at when it comes to already established companies.
Sometimes there are other requirements for borrowing money. For example, this may mean that the company must convert over a certain amount. It can also be a requirement that the company has its headquarters in Sweden, and sometimes someone needs to go to the bail in order to borrow pangs.
What one can borrow for – example
There are many different types of business loans. Firstly, the conditions differ slightly depending on which type of company one is
have. For example, a loan to a limited liability company has a different structure than a loan to an individual company. But the loan
also differs depending on how you need the money and what they are to be used for.
Companies borrow money for all kinds of reasons. For example, the reasons may be:
- For investments in the form of new machines
- For renovation of premises
- To produce a new product
- Because you need money before the customers have paid their invoices
- To cope with a bad period
- … And most other reasons
In other words, it can be about a little anything, but basically usually
The reasons are that you borrow money either for the company to be able to grow or for it to survive. If you are going to start a new company, you may need a start-up loan. New ventures cost money, and often much more than they earn. However, it can often be difficult to borrow money when you have no security or may not even be able to show business that is on the way. Almi is a company that can lend money to start up companies, and there are also some other lenders who can offer this. Another option is venture capital, where companies or people enter money in exchange for joint ownership. If you need money faster than your customers pay their invoices, you can use factoring. It is a service offered by finance companies or banks, which means that companies sell or borrow their invoices. Factoring can be a good option for SMEs who need to get money fast. Using factoring also means that companies protect themselves against credit risks.
Find the best lender
The home page that compares private loans has now also started with corporate loans.
You simply make an application and corporate loan gives you a list of what interest rates and conditions the different banks can offer you. It is free to make an application and you do not commit to anything when filling in your information.