As a business you have to invest every now and then. You can take out a business loan for this. Crediloan offers an easy comparison tool with which you can compare the different providers:
Tip: Make your request with multiple lenders as they use different acceptance criteria.
What is a business loan?
The business loan stands for business credit for companies. These can be:
- Sole proprietorship
- Association with full legal capacity
- Association with limited legal capacity
- Cooperative / Mutual guarantee company
The business loan, also called SME loan, is used for investments that can take the company to a higher level. Examples of investments can be: the household effects, business premises, employees or materials. The following factors are included in the business loan agreement or contract:
- The relevant amount
- Duration of the loan
- Duration fixed-interest period
- Interest rate
- Arrangement of recording
- Arrangement of repayment
- Further specifications, such as collateral
Who does the business loan apply to?
A distinction is made between a large and a small business loan. You can apply for a loan, depending on your purpose and type of business, provided you have a ComChame and VAT number. Do you have an existing company and are you considering new business financing? Then you will have to provide your annual figures for the last financial years. These can be requested from the ComChame. If you have a new company, then submitting a business plan that includes forecast figures is sufficient. These figures must also be tested by a financial adviser.
Business loan for self-employed?
In the initial phase it is difficult for a self-employed person to be eligible for a loan. You have little paperwork that you can deliver to the bank. Nonetheless, there are things that you can use to provide certainty to lenders to qualify for a business credit:
- If you are a homeowner, the relevant documents can help you
- If you do not have a negative BKR registration, you also have a greater chance of a loan
If you answer the above points positively and you have been self-employed for more than three years, you will be eligible for a loan sooner. Pay close attention to the fine print and whether it is actually a business loan or a private loan. The conditions can differ greatly.
As an entrepreneur, do you miss a budget to finance goods, equipment or labor? Then a business loan can offer a solution, provided that you do not have a negative BKR registration and your company figures meet the criteria. Compare with us the different providers, their closing costs and interest rates.