Are you planning new investments? Apply for company credit online
Are you planning to start a new business or do you want to expand or modernize your company? Then you can significantly increase your liquidity with a company loan in order to be able to implement your project quickly.
What is a corporate loan?
A company loan is a liquidity procurement for a certain period of time. The loan is repaid to the lender by the borrower in installments and a corresponding interest rate.
Anyone applying for a company loan in the start-up phase must take higher interest rates into account, since the new company does not yet have any meaningful economic indicators and the risk of default is also significantly higher.
A company loan is useful if you, among other things
- planning a debt restructuring,
- Have to finance the purchase of goods,
- increase your liquidity or
- want to grow your business.
However, it is not so easy to get a corporate loan.
Small companies in particular have to prepare for longer negotiations at their house bank or expect rejection, because many financial institutions refuse to pay a loan for fear of a possible default risk.
Apply for company credit on intermediary platforms
A less complicated alternative are the online marketplaces for brokering loans (corporate loans and loans for the self-employed), which are financed by private and institutional investors.
A major intermediary for such loans on the market is our service.
On the platform, you can apply for a company loan online, set the loan amount (maximum $ 750,000), desired term and purpose.
The other advantages: quickly decides on the lending and payment, you will receive personal advice and flexible special repayments are possible. In many cases, the loan can be paid out within seven days of applying for the loan.
The credit for companies runs in four steps:
- Applying for the loan
- Sending the conditions
- Send your documents
- Personal identification and loan disbursement
What are the advantages of a corporate loan?
Since the company loan is used to build up the company, to finance goods, machines or to grow the company, the money used is considered intended.
For example, if you buy new business inventory, it is included in the balance sheet as fixed assets and increases the total capital of your company. The new liabilities fall under the item “debt” in the balance sheet. The resulting interest charges can also be tax deducted and the acquisitions depreciated over the useful life.
Further advantages of the company loan:
- Interest charges can be claimed for tax purposes.
- The company’s liquidity increases enormously.
- There are no other investors who have a right of co-determination.
- The company key figures can change positively.
- Despite the lack of equity, current or fixed assets can be financed.
What should you look out for in a corporate loan?
When drawing up the contract, the loan amount, term and other conditions are taken into account individually to meet the company’s needs. But you should not only consider these factors when lending, the following important points can vary from lender to lender.
These special features can be granted or you should know the following terms:
- Redemption-free period: You often have the option of agreeing up to two years of redemption-free periods, so that you can postpone repayment of the liabilities until profits are made.
- Variable or fixed interest rate: Pay attention to whether variable interest rates can be agreed, because this option affects your interest payments. Variable interest rates can be adjusted to changing market conditions during the contract period.
- Payment due date: The regular payments of your company loan can eg B. monthly, quarterly or annually.
- Repayment schedule: The repayment schedule is the agreement on repayments of the company loan. The repayment rate is made up of the loan repayment rate and the respective interest charge.
- Annuity principle: The repayment rate remains the same over the entire term. Because you reduce your remaining debt with each installment payment, the interest charge decreases over time. The rate of repayment rises with constant rates.
- Special repayment: Often the option to pay the full loan in one time or an annual special repayment can be contractually agreed.
Applying for corporate loans on an online brokerage platform is certainly an unbureaucratic way for small business owners to quickly get a larger sum of money for various business purposes.
Lending is not decided by banks, but by private and institutional donors, so that rather better conditions – in terms of loan amount and interest rate – are possible here.
But that doesn’t mean that getting the money will be much easier. Because even private donors do not want to lose their deposits to unprofitable and poorly performing companies.