Corporate Loans – Business Loans

Business loans are largely a bank loan for companies, a corporate loan. However, as in several other respects, it may differ somewhat between how one goes about private individuals and companies. There are several ways for entrepreneurs to borrow money.

Business loan for business concept

Business loan for business concept

If you have a business idea, you may need external financing to realize this. If you have a company, one way to get funding is to apply for a corporate loan. You then go to a lender and present your business idea, it is also important to have a business plan. The lender, for example a bank, will review the business idea and not least the business plan and the budget to make an assessment. The risk in the business concept affects the outcome, both as to whether one gets a corporate loan and the amount that one can borrow. Even you who are looking for the loan, your personal finances and your relationship with the bank can influence. This is because the lender needs to make an assessment of the ability to repay the loan. The process and conditions may also differ between whether the company in question is a legal person.

Business loans

Lender

When applying for a corporate loan, there are different types of lenders. For example, you can go to the bank where you are already a customer, another bank or an investor. You can also apply for corporate loans via Almi. There is no upper limit for corporate loans, but applies to companies with a maximum of 250 employees. There should also be a co-financier for these corporate loans.

Business plan and budget

Business plan and budget

If you have a business idea that you are looking for, you need to prepare properly. The better prepared you are and have a well-worked business plan, the greater the chance that you will get a business loan.

You need to be able to show that your idea will be profitable and that you have a functioning and sustainable plan. The lender of course wants to have his money back and will make an assessment thereafter. If you cannot show a good plan with a reasonable budget, there is a risk that they will deny you a loan. You therefore need to convince the lender that you will be able to repay the corporate loan. This is best done by reading properly, doing his homework and being prepared for all questions that may come. Check your industry, investigate your competitors, calculate margins and profitability, and be realistic. Figures such as “if I get 5% of the market I will earn millions” are often not enough. You also need to justify how you will actually get 5% of the market you are targeting.

There are several television programs when entrepreneurs seek financial means, such as Dragon’s den, Shark tank and the Swedish Dragon nest. There you can get tips on both good and bad ways to apply for funding. Going to a bank meeting is not as dramatic as in the programs that are aimed at TV viewers. But by listening to what the investors are asking for, you can get tips on what you need to read about.

Business loans

Security for corporate loans

Another important aspect is what security one can bring up, this can be crucial for whether or not one gets a corporate loan. The security may consist of, for example, properties or land, which has a relatively high value. You can also use some form of bail. For example, it can be a guarantor who is obliged to pay the loan (if the company cannot pay). A guarantor can either be one, for the company, outside person but also the owner of the company.

The important thing from the lender’s side is that the guarantor has good finances. If a person has slack private finances, this can be considered too uncertain to be a guarantor, the economy needs to be stable. This is because the guarantor’s economy needs to be sufficiently good for the loan to be repaid. Another important aspect of the guarantor’s side is that one really thinks through and is confident about his thing before agreeing to become a guarantor. For the same reason, if the company cannot pay the loan, the guarantor is liable for repayment.

Different types of business loans

Different types of business loans

A variant is a traditional loan, often it involves a larger amount of money and the loan is paid out in a lump sum. The loan then often goes for a special purpose as an investment in the form of new machines or modernization of the company.

Another variant, which is quite common, is that you have a check credit. ChekkerCredit is generally used to get better liquidity in the company. One can, for example, use check credit to pay ongoing costs if one is lying out with money while waiting for payment for invoices issued. When one’s customers have paid the invoices, the money is returned to the overdraft facility. It thus works much like a credit card, since one can use the credit before salary and then pay back on wages. As with credit cards, interest may be added if you use the credit.

Loan for self-employed small businesses

Online loan for self-employed and small businesses

Online loan for self-employed and small businesses

A loan for self-employed small businesses is difficult to obtain today. Especially for small companies, it is difficult to get a small loan from the house bank. Alternatively, the Internet offers an online loan for the self-employed as well as small businesses. An advantage of online credit is that even small amounts of credit can be financed. Also, as far as conditions are concerned, an online self-employed loan is often more attractive to small businesses than bank loans.

Contents Self-employed loan for small businesses

Contents Self-employed loan for small businesses

  • Online loan for self-employed and small businesses
  • Data and documents for checking the online loan
  • State grants for the self-employed and small businesses
  • Personal loans for the self-employed and small businesses

Data and documents for checking the online loan

Data and documents for checking the online loan

The following data and documents from the self-employed and small businesses are required to verify an online loan application:

Data on the loan object

Data on the loan object

  • Amount and duration of the loan
  • Purpose and a brief description of the company

Data about the company

Data about the company

  • Name, address and legal form of the company
  • Further information on the founding year, annual turnover, sector and the number of employees

Data from the managing director

Data from the managing director

  • Name, address, date of birth, nationality and passport number from the managing director
  • Schufa information

Documents for the online credit check

Documents for the online credit check

  • ID card copy from the managing director
  • Annual financial statements of the last two financial years
  • Balance sheet and income statement of recent financial years
  • Business evaluation of the current financial year

After you have submitted all the data and documents in full, your online loan request is no more obstacles.

State grants for the self-employed and small businesses

State grants for the self-employed and small businesses

Anyone who, as a self-employed person and a small entrepreneur, does not apply for and receive government grants and subsidies, will be giving away cash. For self-employed and small businesses, government grants and subsidies are available from the federal government, the federal states and the local authorities. There are various institutions for self-employed and small businesses where these government grants and grants can be applied for. First and foremost is KfW Bank, which operates nationwide, as well as the individual promotional banks in the individual federal states, which provide various subsidy programs for the self-employed and small businesses.

Personal loans for the self-employed and small businesses

Personal loans for the self-employed and small businesses

The world is changing more and more. As an alternative to bank credit, personal credit is increasingly on the rise. Here, the money comes not from a bank, but from several individuals and investors. There are now private credit intermediaries for the self-employed and small businesses on the net. With a personal loan, it is easier to finance a business idea. A personal loan is more flexible in terms of the interest rate and the repayment period, but also the collateral is more flexible negotiable.