Business loan is faster and more flexible

A modern business loan is usually faster, more flexible and with other conditions against what, for example, a bank has. Most new lenders on the market are online and therefore have no physical offices where they receive their customers. In addition, many of these new loans to companies have very short maturities. Often no longer than a year.

The same layout fits better for us and other modern lenders as we have shorter maturities and you can pay off the loan faster. That's why it's very good for those who need to solve a temporary need for liquidity to later pay back the loan after a few months when your business has generated revenue. Especially for those who need to resolve an emergency crisis. For example, the pizzerian whose furnace has broken, the taxi driver whose car needs to be repaired, the clothing store that needs to invest in the warehouse for the high season or the like. There is a fast and easy business loan online the best solution. Because the company can not afford to stand still while a bank is going to handle your case, or a billing service will collect and purchase your invoices.

Most lenders promise the same three things:

  • 1. Fast application
  • 2. Fast answer
  • 3. Fast payment

Of course, these may differ between the different companies, but with us the application will take 1 minute, you will be notified within 1 hour and we will pay the money the same day.

Because we can keep down the costs like a bank with offices across the country can not. Because we can work on new processes and really capitalize on the digital transformation that society is undergoing. When founded in a couple of years ago, we were able to help many customers with, for example, mobile BankID or eID in order to identify and sign. Today, according to the report, over 73% of the population have Mobile BankID. When we started in a few years ago, just under 49% had mobile BankID. So that´s a big development and upside for us, as a business.

So thanks to the Internet and digital processes, we can keep low costs when it comes to staff, premises, etc. It also means that we can be much faster than the bank. There, you should make an application, book a physical meeting and include balance sheet and performance reports, financial statements, business plan and much more. This takes time and energy from you while it is not even certain that you get the loan you need. With an online application you will have time to do what you should do - run your business.

With its high costs, the banks usually only have the opportunity to help those companies that have come a little longer or want to borrow higher amounts. A small loan of 20,000 SEK with a long installment period to a relatively newly established company is not interesting for the banks. In addition, it may take several weeks or two months from the first contact with the bank to have the money on your account. Then your need may be over and growth has stopped.

What's the cost?

Is a corporate loan online more expensive than going to governmental instances, the bank, factoring or any other solution? Yes maybe. It usually depends on your company's individual situation. Credit rating plays a major role in the loan amount offered and the total cost of the loan.

Many, even the banks, are working for some kind of credit process that determines if you are a big or small risk. You may have heard of the word creditworthiness before? Your private and company credit rating is based on a variety of parameters. For example:

Private

  1. Steady income
  2. Payment remarks
  3. Company involvment
  4. Property data

Business

  1. Turnover
  2. Cash flow
  3. Profit
  4. On-going errand with some authority
  5. Payment remarks
  6. Payment history

You can read more about payment remarks here


Interest rate or a fixed fee?

Something you should pay attention to is the interest rate. The effective rate. This means that you add monthly interest with any setup fees and other costs for a full year. Then you get the effective interest rate for the loan. Many prefer a fixed monthly fee in advance of a floating rate or other hidden costs that may arise. Just go to yourself and think if you'd rather pay a fixed cost for your mobile phone subscription or if you have a mobile setup, it may be very expensive for you for some months.

Starting fees, hidden costs, fee for early repayment and more

Do not stumble on the interest rate. A low interest rate can be hidden from setup fees, hidden costs and fees to resolve the loan early. Some also take the setup fee from the required loan amount. If you want to borrow, for example, 100,000, they will remove 2 000 so that you only pay 98 000. Not really as you thought, right?

Compare!

A hot tip is to compare lenders of modern online loans with the authority, major banks and different factoring solutions. What is best for you and your business? You may have a newly established low turnover company, cash flow and payment remarks? Then factoring or a modern business loan online can be a solution for you. Also, note that many lenders consider it a positive sign that you have a loan at gov. instances as they are partly a state-owned group that invests in future growth. Then the corporate loan can serve as a support for the capital and support you have received from the proper authority.

But beware before applying. Some applications may be binding or cost money. Then read before submitting applications to see what you get for offer from the different lenders. You should also be prepared to answer some questions regarding your business. For example, what to use for the loan. Also, check up on regulations and banks on the SEC

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