Business loans - what is worth knowing about them?

Business loans – what is worth knowing about them?

Owners of their own business enterprises often encounter various kinds of obstacles on their way. One of the most common problems is spending that grows out of proportion to profits. Administrative costs and the rapid development of companies cannot be done without adequate capital. Often, solutions are needed to obtain extra cash. In such situations, non-bank loans for companies are helpful, which are distinguished by a small amount of formalities, often the lack of certificates and a quick decision. 

Business loans – what conditions must be met? 

To receive a non-bank loan for companies, you only need an income certificate, and the company must operate for 3 to 6 months. Although it is worth noting that loan companies are opening on the market that offer financial support for entrepreneurs who have just started their business. For larger sums, lenders require security, among others. in the form of a mortgage. However, there will also be those who will only need a document confirming their identity and basic company data. The loan amounts for companies vary, they depend on the non-bank institution. It happens that taking the sum of PLN 100,000, you have to pay it back in 24 months – the repayment period is short and the monthly installments are quite high. Some parabanks offer, for example, a liability of 120,000 and the repayment time is up to 60 months. For entrepreneurs who need a small sum, there are offers, e.g. payday loans for 30 days with a loan amount of PLN 5,000.

Types of loans for companies

Lenders often boast of various types of loans for companies. Thanks to this, the entrepreneur can choose the best options for himself and his company that will suit his needs.

Among the offers available on the market, the following stand out:

  1. An investment loan for the implementation of investment projects that require a large amount of capital.
  2. A working capital loan that provides cash for the company’s current expenses.
  3. A payment loan that guarantees the company’s liquidity.
  4. A bridging loan which, after obtaining a recommendation, serves the purpose of intensifying business activity.
  5. A technology loan to support the development of production technology.

The biggest advantage of corporate loans is the chance to extend them, as well as the possibility of renewing the commitment many times without an immediate refund. Long repayment periods and high loan amounts are another pluses. All this translates into the development of enterprises. When looking for a loan for individual preferences, at the very beginning you should get acquainted with the wide range of loan companies.

Non-bank loans for companies – why do entrepreneurs use them?

Mainly because taking out a loan in a parabank is much easier than obtaining financing from a bank. Even entrepreneurs who are just going to start a business can count on help – a loan for the company.  In most cases, banks require business owners to provide documents confirming their income and check the borrowers’ creditworthiness in detail. On the other hand, non-bank institutions offer a minimum of formalities, without unnecessary certificates. This is a very important issue, especially for companies that are just emerging and are unable to demonstrate income.

The above-mentioned types of loans have different parameters. As previously mentioned, this is an important aspect for every entrepreneur, as it gives the opportunity to tailor financing to individual needs. In addition, more and more often the non-banking market gives a chance to receive a loan for companies against collateral. This is the most advantageous type of financing. Why? Because the risk that the lender may incur is reduced.

Business loans – are they expensive?

This question is very often asked by borrowers. If non-bank institutions do not want security, the costs of financial support for companies and sole proprietorships are most often the same as for standard consumer loans. Interest rates are very often similar, and negotiations are possible only with really high amounts. It is in this field that banks differ the most, because they do not provide the borrower with additional opportunities. Only with bank financing, the borrower can count on better conditions.  An interesting idea is to apply for a credit card, where the limit of even several thousand zlotys ensures financial liquidity, without taking loans.

In summary, loans for companies in a parabank are often the only and best solution for business owners. Thanks to them, they can implement planned projects, settle administrative fees, etc. And most importantly – also maintain financial liquidity. It also allows them to survive and often grow into a company that is just opening up. The only downside is slightly worse credit conditions than in the case of loans or loans taken from a bank. These, in turn, require more certificates and formalities.