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Business loan – for whom?
Currently, entrepreneurs can use various forms of financing. On the market of banking services, investment and revolving loans (financing current operations) have become the most popular, but a large number of entrepreneurs also use smaller forms of assistance, such as an overdraft limit or a special credit line.
Companies that have been on the market for a long time can afford to capriciously and freely change their offers, but the newly created ones have a big problem.
Loans to new companies constitute a vast minority among banking product offers. Lenders usually require that the company exist on the market for a minimum of 12 months and can boast of a well-closed financial year, especially when they are interested in a large loan amount. Fortunately, at a time when startups are growing up like mushrooms after the rain, banks’ credit policy is slowly changing in favor of the customer.
Loans to companies – types
Entrepreneurs, regardless of what type of business they run, are very willing to reach for loans. In some cases, the loan guarantees them financial leverage and double their profits. Below are the most common ones:
- investment loan – intended for financing the investment,
- working capital loan – for financing current operations,
- bridging loan – useful when we have to cover the costs of projects for which we have received a subsidy, but we are still waiting for a refund,
- technology loan – intended for implementing new innovations,
- mortgage – with collateral
- credit limit (overdraft).
Among the above-mentioned forms of loans, we can distinguish several most popular banking products:
- Loan for young companies – granted to companies from day 1, also known as loans for start-up companies.
- Cash loan for companies – it works on similar principles as cash loan granted to individuals.
- EU loan for companies – the borrowed funds come from EU funds.
- Corporate consolidation loan – allows you to consolidate your company’s liabilities into one loan.
- Non-bank loans for companies – just like in the case of individuals, enterprises struggling with financial problems can take advantage of non-bank products and take a loan for companies without certificates or a loan for companies without BIK. Both products do not require too many documents, and a poor credit history does not affect the decision to grant a loan. When deciding on loans for companies without BIK, it should be remembered that this type of financial products is usually very high interest rate, and the costs of such a loan are disproportionate.
- Loans for small businesses – most often they are granted for any purpose with simplified financial and registration documentation.
The interest rate on corporate loans depends on the individual offer of the bank. We can find offers with zero commission, but with a higher interest rate (about 7% per annum) or with a lower interest rate (at 3.4%), but with an added commission for granting a loan. The so-called difficult loans for companies, i.e. those intended for entrepreneurs who have problems with financial liquidity, usually have higher interest rates than other loans.
On the market you will find proposals for non-bank loans with an interest rate of 10%, where the APRC is 70%, but there are also ones where the APRC is even 8408%.
Loan for new companies
Online loans for companies can now be taken just as quickly as loans for individuals. You can take a quick loan for companies at the bank where you run your business account, thanks to the fact that the lender has an insight into your finances and does not need additional certificates.
After logging into your electronic banking, offers for quick credit for online companies will be waiting for you, all you have to do is fill out the form and an advisor will contact you.
Working capital loan for companies
The working capital loan for companies is designed to help maintain financial liquidity, supporting the company’s day-to-day operations. It can be in the form of an installment loan, thanks to which the company receives a one-time loan or a revolving credit line in the current account.
Working capital loans are most often decided by companies with an established position on the market that have long experience. This is because the costs and amount of credit depend heavily on the company’s condition. Fortunately, more and more banks offer revolving credit for new companies.
Investment loan for companies
Investment loans for companies are for many the only chance for new investments. Banks very often do not set an upper limit on the amount of credit, and some of them cover 100% of the investment value and do not require own contribution. Additionally, when applying for this kind of undertaking, the company may receive it for a very long period, even for 20 years!
Obtaining an investment loan is not as difficult as it may seem, but it requires a little more work than when applying for a cash loan. In addition to registration and financial documents, the entrepreneur will have to submit a business plan.
In this case, it is the most important document, because what it contains will ultimately convince the bank that your investment will be profitable.
An investment loan for small businesses is given just as often as for large ones, with the difference that the lender may require other documents from companies of all sizes.
An investment loan for new companies can be granted on the first day of operation. In this case, the bank will want to receive from you information about the estimated revenues that your company will achieve.
Business loan for starters
A loan for a new company is often a separate product in the bank’s services catalog. This type of loan is granted from day one, often for any purpose. It can be used by entrepreneurs who run their business for no more than 12 or 18 months (depending on the bank) as natural persons, under civil, physical, public or partner companies and as farmers.
A loan for a new company can be granted without any material collateral (then the loan amount is smaller) or with collateral. In this case, the lender usually does not require invoices.
A start loan can be taken in the same way as an online business loan. All you have to do is visit the bank’s website, submit a loan application and complete the business plan. Next, attach a list of necessary attachments to the application. Most often it will be an entry in the business register and a certificate of non-arrears with payments to ZUS (Social Insurance Institution) or the Tax Office.
At this stage, you can also decide if you want to apply for a larger amount. If so, you will need to secure the loan with a mortgage, assignment, third party surety, blank promissory note or pledge on the company’s fixed assets.
Currently, many banks offer loans to new companies. Entrepreneurs can also take advantage of a start loan with the help of the government, so when choosing an offer for themselves, they can be guided by, for example, guidelines such as the amount of interest or margin and choose the currently cheapest loan for companies.