Business loans: increase your working capital

Lenders / Thursday, February 21st, 2019

A loan for freelancers and entrepreneurs is also called a business loan.

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You can use this business loan in your own company to strengthen the liquidity position in the short term. By means of a company financing you can invest in your company and strengthen the working capital. With this you invest in the future of your company without having to use your own resources, which may not be there.

The loan is based on the title of your company and is based on the underlying results.

Let your company grow through a temporary capital injection.

Do you want to start financing as a self-employed entrepreneur for private purposes? Then you can borrow money from regular credit providers at cheaper interest rates. To this end, several credit providers have now extended the acceptance conditions. Read also ‘Borrowing money for self-employed entrepreneurs cheaper’

What are the conditions for a business loan?

The conditions for a business loan are mainly aimed at limiting the risks.
The smaller the risk, the lower the interest rate.

The following criteria are decisive for this:

  • How long does the company exist?
    With most credit providers, you must be registered at the Chamber of Commerce for at least 2 years to be eligible.
  • Is the owner and / or company established and registered in the Netherlands?
    This is important with regard to the liability and recoverability of the loans lent.
  • Is a minimum turnover limit reached annually?
    Your company must have a minimum size to apply for financing, the turnover must be at least above € 50,000 per year.
  • Are there annual accounts available?
    The company and related results are assessed on the basis of these annual accounts.

On the basis of the above aspects the risk is assessed and determines whether the financing is provided and if so under what conditions.

Every business lender uses other guidelines in this. It is important to gather information from various parties to compare the possibilities.

What is the difference between a business and consumer credit?

The biggest difference between a business and a consumer credit is on behalf of whom the financing is entered into.

Where in a business credit this is the company, possibly with a joint and several liability, this is always a natural person with a consumer loan.

In addition, a business loan is not registered with the BKR. The BKR is only used to prevent over-crediting with consumers and consumer credit. Company debts are not registered with the BKR, but only loans in the name of natural persons.

For an SME loan, an exit fee may be charged. With a consumer credit, it is prohibited by law to charge commission to consumers.

A personal loan or revolving credit is capped at € 75,000. This amount is not limited to a business loan and is determined on the basis of the investment, company size and associated risks,

Calculate a business loan?

Curious about your maximum financing options.

Calculate the possibilities for maximum business financing via the various providers.
Each provider calculates with other guidelines and frameworks, so the differences can be large.

This is in contrast to a regular consumer credit, where the directives are centrally regulated.

This concerns both the maximum business loan and the conditions at which this loan is offered.

With the terms of the business loan you must think of things such as:

  • The installment period
  • The interest rate
  • Other possible additional costs

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