Business loans – how do you choose the best company loan? | SMART Bankier.pl guide
A business loan is a solution that entrepreneurs can allow to implement planned business activities. It is important, however, to choose the best loan offer as well as to match its repayment terms to the Borrower’s real capabilities. It is worth knowing the basic criteria for comparing loan offers for companies and the conditions for obtaining it.
A business loan can be taken by an entrepreneur at any stage of his business. Also by those who do not yet have many years of financial credibility, because they are just starting their business on the market. Although a loan for a new company is not offered by all banking and financial institutions, it is available.
Who and how does it grant loans to beginner companies?
Although the entrepreneur is just starting his own business, he can think about using the product, which is a start-up loan for new companies. Such a loan is usually dedicated to them as the first financial resources for starting a company. The loan offers usually indicate that it is: “a loan to set up a company “, “a loan to open a company” “a loan for a new company ” or “a loan to start a company ” or “a loan to companies to start “. The most common advertising slogans for business loans are important because the entrepreneur can already know if this will probably be a product for him.
In the case of such offers, the loan for new companies is granted without verifying the company’s generated revenues, because of these, it is not yet there, whether due to the start of the company they are just beginning to be worked out. When applying for it, interested persons should go to a banking or private institution. The potential lender may, however, ask you to present documents on the basis of which you can draw up the company’s forecast income. Finally, many institutions require the starting entrepreneur to provide another statement of own income (e.g. obtained simultaneously from his place of employment), and even establish collateral for repayment of a loan in the form of a mortgage or by proceeding with the repayment of a debt of a guarantor with fixed income.A company loan for new entrepreneurs by many entities is granted only after 12 months from the date of setting up the business. Small business loans are also available as part of a favorable debit balance in the company account, e.g. up to 20,000 – 40,000 PLN. In this case, a company loan is easier to obtain, sometimes even only on the entrepreneur’s declaration (if there are no other debts, arrears in repayment of credit bases). Such a non-returnable business loan has numerous advantages. Once activated funds in the account do not have to be returned, the debit is systematically renewed, repays and returns after the next funds are paid into the account. It is important to ensure only systematic influence.
Where can you get loans for micro companies ? Where is the loan for company development offered ? Which loan offer for small and large companies is the best?
A loan for microfirms is a particularly sought after product on the market, and many, especially one-man forms of doing business are still emerging. This form of company loan is taken even for current, seemingly small expenses, e.g. repairs, purchase of additional equipment or payment of invoices. Loans for small businesses are usually granted for limited amounts, up to a maximum of 600-700 thousand. PLN, however, the procedure for their withdrawal is much simpler than for a large company loan. Micro loans for companies do not require material collateral, and funds are withdrawn up to 24 hours after signing the contract. Loan for micro companiesis available in banks, parabanks as well as private individuals. The first step in obtaining it should be contacting the Institution Hotline in order to get to know the offer from Consultants or making an appointment with a dedicated advisor in any branch. Loans for small businesses in many institutions are granted on more favorable terms, when the customer also uses other products offered in the credit package for small businesses, e.g. company account or debit in the company account.
A loan for the company’s development is another product. This is mainly due to the fact that this product is used by entrepreneurs with many years of activity interested in its further development. In practice, company loans of this form are paid out for very large amounts, mainly in banks. Often, such loans for a company require the presentation of a high creditworthiness of the borrower, supported by high and documented income of the company. Such a loan in a company is often paid out for a specific business venture in the company, so before it is granted, the business plan of this venture is verified, and analyzes are made of how funds are released (whether it is not too risky).
A company loan is an activity for the development of a company or a new venture. Sometimes it is the first important resource in general to launch it. Before launching it, you should carefully verify the various financing offers of this form. Sometimes the same amount of loans for both beginner and developed companies can cost much less if only the entrepreneur takes advantage of a good offer. Entrepreneurs who are interested in business loans for very high amounts, profitable for a given bank, they should also try to negotiate the terms of lending individually on more favorable terms in “their bank”. It is worth contracting such a commitment to agree on preferential terms of repayment, e.g. starting the repayment period for installments of this commitment, e.g. after 6 or 12 months from its activation, ensuring the right to credit holidays (taking advantage of the selected period of time). When choosing a loan for companies, it is worth taking into account when choosing an offer low costs, preferential repayment conditions, minimum formalities.