Getting a small business loan can be tricky, but it is certainly not impossible with sufficient preparation.
When you submit your application, the lender will primarily look at your credit history, business plan and previous experience for running the business you want the loan for.
Guide application for business loan
- Guide application for business loan
- Small business loan – business plan
- Credit line is a loan
- Loan small business
- Loan individual company
- Zaloan Corporate Loan
- Benefits of Zaloan loans
Lenders primarily want to make sure that the loan can be paid back so they will want to review:
* Company financial items
This includes balance sheets, income statements and equity / assets ratio, how much is the company owed (loans, payments, etc.) in relation to what is invested in the business (equity). The more equity your company has, the more likely you are to get funding.
* Your personal financial background
This includes declarations, claims / liabilities, assets and your own creditworthiness.
* Your suitability as an entrepreneur
This includes your work experience and education.
* Any security (fixtures, machines) that can be provided.
* A clear business plan that shows that the company will make money.
Have the goal of improving all problem areas so that you can give as good a picture as possible of your business and maximize the chance of getting a better loan.
Small business loan – business plan
The key to getting a small business loan is a good business plan! If you do not have a business plan, you must write one. The plan is a detailed analysis of all aspects of your business and its goals.
It will show potential lenders how the company will make money, thus assuring them that you are able to repay the loan. Make sure to explain, in detail, how much money you need, what to do with every dollar borrowed and when you will fully repay the loan. The business plan must include a forecast of cash flow.
Do not overwork the plan with unnecessary tasks. The lender is only interested in numbers not of soft visions.
A business plan is a description of all aspects of your business – from the most basic elements, such as market overview, detailed operation and management plans, long-term strategies and goals for sales and marketing.
A solid business plan must describe how your company can and will conduct a profitable business. It should consist of the following parts;
- Table of Contents
- An introductory summary
- Company Overview
- market analysis
- Marketing and strategy
- management plan
- Financial data
Put together all the information in a folder that gives a professional impression. The cover page can advantageously have a picture of your business (with many customers).
Look for the right lender
There are many different ways to finance a company besides borrowing money from a bank. Because the bank your company already has a connection with has the best insight into your financial situation, it can for that reason be either your best friend or someone you should avoid turning to.
At Lenguada you will find alternative lenders who can offer fast and simple business loans.
Credit line is a loan
An alternative and the absolute cheapest way to finance a growing limited company is to bring in new shareholders by issuing new share certificates.
A credit line is a corporate loan to small businesses without personal guarantee. It is your company that applies and becomes responsible for the loan – no UC or other information is taken on you as a private person. Financing for smaller companies has always been difficult. The major banks are often difficult to flow and, in particular, new companies must submit a lot of documentation, a business plan must be assessed and the purpose of the loan must be carefully reported.
Even if the bank approves the loan, personal security is required for the loan to be granted.
Loan small business
For a small company, one of the major obstacles to expanding the business is the difficulty of finding enough capital to finance the growth. Getting access to credit to be able to develop their business is one of the biggest challenges for most small business owners.
Part of what makes it harder than it should be is that many small entrepreneurs simply do not know where to find a small business loan that is easy to apply for and which is paid without unnecessarily long waiting time.
Loan individual company
The general perception in the corporate world is that only a small proportion of all small business owners turn to their local bank when they are in need of financing.
They know or believe they know in advance that it is hopeless. Swedish banks are simply not interested in lending money to smaller companies, and this applies in particular to one-man or company-owned companies. The risk of making loan losses is simply considered too large.
The natural solution for financing a growing company should be to turn to the same bank as the entrepreneur has his business account. Unfortunately, the condition for many small business customers is quite small to be granted a loan in a bank that would rather make easy money on large companies or private customers with good finances.
Loans to small companies mean a lot of work and high risk for future headaches for the individual bank employee.
Corporate loan from the bank
Banks are conservative and preferably avoid taking any risks. To their advantage, however, it can be said that if they grant a loan, the conditions become good and the interest rates are market-based.
It is possible to get a corporate loan from the ordinary bank provided that the business and the company’s owners have a good credit rating, have a history of successful business in the business sector for several years and can offer sufficient collateral.
Finding the right lender
Finding the right lender does not always go overnight: although there may be lots of potential loan options, not every corporate loan or lender is created equal – especially the companies operating outside the traditional banking sector.
Each lender offers different terms, which often makes it difficult to compare them. When money is shaken up quickly, it can sometimes be tempting to take the first legitimate offer, but it may not be the best method.
In order to find a loan that meets its business needs and current financial situation, an entrepreneur can utilize the experience and expertise of someone with long experience of corporate financing.
Zaloan Corporate Loan
If the company’s owner cannot live up to the rigorous demands made, he or she must investigate other options. A good place to start is Zaloan Business which can grant loans to its own entrepreneurs where the bank had said no. Often, a need for capital can suddenly arise and require a quick solution. Today, there are several options depending on the need for financing and how quickly capital is needed.
Of course, fast access to capital from alternative lenders can be somewhat more expensive than a traditional loan, so it is important to have a well-worked plan for what the loan should be used for. Banks take credit reports on small business owners and assess them according to the same rigid decision and regulations as private customers.
This means that a good cash flow and a growing turnover are not always enough to qualify for a loan at the bank. Zaloan Business attaches less importance to credit points and instead studies the company’s cash flow as the basis for a credit decision.
The purpose of Zaloan’s loan is to fill short-term capital requirements and is not intended as an alternative to long-term corporate financing. Zaloan Business offers corporate loans without the need for security, personal interview or complicated paperwork.
Their experienced loan specialists work quickly and efficiently and grant loans without unnecessary waiting. Do you have a company in need of immediate funding and no time to wait for the regular bank’s slow and cumbersome management? Then it is better to submit a loan application online and get a quick offer of a business loan.
Benefits of Zaloan loans
- Say yes when other banks say no
- Loans to small companies from SEK 20,000 – 500,000
- Simple application that takes less than 5 minutes
- The money is available on the company account within 24 hours
- Transparent and clear loan terms
- Always access to a loan specialist
What is needed to get a business loan from Zaloan?
Zaloan Business offers unsecured business loans. They base their decision on the company’s cash flow based on transaction history. Decisions on loans are not based on a credit report but on companies’ incoming and outgoing payments over a period of time, so-called payment flows. Zaloan’s corporate loan has a repayment period of 6-12 months.
Zaloan Business is aimed at small business owners with the aim of providing the best possible loan experience.
Modern companies that are active in a changing market sometimes need financing quickly and without delay and Zaloan’s business concept is to provide small business owners with the investment capital they need when needed.