Requesting business loan for your business is a big step for many entrepreneurs.
Yet you sometimes can not escape it. Running your own company costs a lot of money besides the necessary time and energy. Especially in the initial phase of your business you are often forced to make a lot of investments. Of course, you start with your own savings, but that unfortunately turns up once. Where can you quickly borrow business money for your company?
Business loans through the bank . This is a logical idea. The bank is often the best option if this is possible.
Despite all the new financing options, the bank remains the most popular option for most entrepreneurs, especially for small loans up to several thousand euros. Popular forms are red, or a continuous credit of one to five thousand euros. A business card, which can be repaid in parts, is also popular. Sometimes a personal loan is also a possibility.
For start-ups, however, it is more difficult to get (more) money from the bank. The problem is that banks want some security and prefer to finance larger amounts. You must quickly think of amounts of one million or more, where collateral is possible. Fortunately, there are financiers where you can also borrow smaller amounts without collateral . Some of them even borrow money based on your business plan. In the case of starters, even the annual figures are not decisive.
There are certainly more platforms to be found, but these three parties certainly resemble a place in the Dutch financing landscape. Atlantis is a Dutch club, New10 is an internet solution that was launched by ABN Amro and Funding Circle is an international player that now also quickly conquers our country.
These new credit suppliers often base the credit check on data from your company. Via public files such as the Chamber of Commerce or the Register of Registers, but they also purchase data that have collected payment behavior from suppliers. In this way they know quite a lot about the financial situation and the payment behavior of your company and they can quickly determine via algorithms whether they want to provide you with a business loan.
Online request can sometimes be processed quickly
Online lending platforms like to automate and that is usually difficult and time-consuming with collateral. Often they therefore work without collateral, but this risk is included in the interest rates. A big advantage of this method is that they can borrow money very quickly. The risk analysis can sometimes take place in a few hours, so that a complete application for a loan is sometimes processed at record speed!
They have thus become a fully-fledged alternative to the bank. If you are looking for a small business loan, the bank often refers to these types of solutions. These players sometimes have acceptable conditions for the business market, depending on what type of loan you are looking for. Especially for working capital or stock financing, these offer quite popular solutions for business loans.
crowdfunding is also being used more and more by companies that, in addition to financing, also want to get the same interest for their company. In crowdfunding, there is a clear difference between share selling ( equity crowdfunding ) and money loans ( crowd lending ). Especially for the latter there are countless crowdfunding initiatives, so in that case it is advisable to choose a platform that fits well with your company. In general, crowdfunding is most interesting for projects that have a high reward factor and do not require too much money.
Starting entrepreneurs who can not yet meet the regular acceptance criteria of banks. This is an independent foundation, but is strongly supported by the government and a number of large financial institutions. The foundation offers money loans up to 250,000 euros.
To qualify for a loan, it requires a credible business plan .
The organization also looks at social aspects. If you pursue a social goal, then the chance that you can borrow business money to start a business is greater.
The government also offers support that can simplify the borrowing aspect for new companies. This way you can also claim SME credit. The amount of this loan is between 50,000 and 250,000 euros and can be compared to a business loan. If you need less start-up capital, microfinance is an option. The maximum amount of credit is 50,000 euros.
An important condition for these forms of financing is that you are open to guidance and advice from the government, both before, during and after the start-up of your company. Another condition is that in addition to having a feasible business plan, you must be able to convince the lenders of your entrepreneurial qualities.
investor who sees the future in your company. The investor can be both a company and a wealthy private individual. Where a bank is inclined to look at the company’s past or the presence of a solid collateral, an investor will look more quickly at the future and the potential return.
Investors can be found in various forms. For example, there are informal investors , also known as business angels . These are often richer (old) entrepreneurs or directors who would like to invest part of their private capital . Various venture capital organizations can be found on the internet to help you with this.
Another form is private equity. These investors have many agreements with investors. It is often larger companies that want to invest their money in shares that are not listed on the stock exchange. In addition, there are entrepreneurs who borrow money from friends, family or other external persons. This group is also described as Friend, Family, Fools (FFF). When they invest in your company, the tax authorities see this as venture capital . Tax benefits were possible in the past, but unfortunately this has been stopped.