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Do you need a business loan quickly? Then there is good news. Recently you can borrow money easily and quickly with an online business loan at https://oakparkfinancial.com/. The request can be made within 5 minutes and the payment can also be arranged within 24 hours. That is very different from what you are currently used to with a business loan. Applying for a business loan has never been easier. You can request your loan quickly and easily via the direct request button.
It is usually known within a few hours whether you are eligible for a business loan. Is this the case? Then the money is transferred directly to your account. No intermediate stations. Simply receive money in your account quickly and reliably. You quickly know where you stand.
Of course you want to know what it costs to take out a business loan. The costs for a business loan are very transparent.
What is a business loan?
A business loan means that you borrow money to invest in your business. Borrow money now so that you can achieve your ambitions in the short term. We have listed a number of characteristics of a business loan for you.
- You must actually use the money that you borrow for the purposes laid down in an agreement.
- It is often requested to provide financing collateral. You can think of real estate, supplies or machines that you already own.
- When you submit a request, a BKR test will be done. It is checked whether there are any loans with payment arrears in your name.
- You determine the term of a business loan yourself, in consultation with the provider. This is tailored to your needs and investment objective.
Why a business loan?
You can use a business loan or business credit as business credit for your company. You can use this to make an investment for the improvement and professionalization of your company. You do not only have to use this investment for product development, but you can also use it for something else. Consider, for example, the purchase or lease of business premises, an acquisition or investment in personnel. You can also borrow money for the expansion of marketing or sales activities. The most important thing is that the investment will pay for itself in the long term.
The table below shows an example of a loan and the total costs (including interest) that you ultimately paid.
|B2 Business Loan – business loans, examples|
|Term of the loan (months)||6||9|
|Example of borrowed capital||€ 15,000||€ 25,000|
|You pay for every euro borrowed||€ 0.17||€ 0.24|
|Total loan costs||€ 2,550||€ 6,000|
|Administration and application costs||We charge a one-time surcharge of 2.5% per loan.|
Repayment of a business loan
It is good to think in advance about how you want to repay the loan. Choose a shape that fits your company. By default you pay a monthly amount in repayment, plus interest. This is then automatically debited. But it is also possible to pay quarterly. Note that the interest rate will therefore be higher.
Repay in a linear way
In the Netherlands, the most common choice is linear repayment. Perhaps known from a personal loan. We will nevertheless explain it briefly. With a linear account you pay a fixed amount in installments + interest each period (for example per month). This reduces the total amount of the loan.
Linear with fixed interest
Because the interest you paid is a percentage of it remaining amount, the interest will be less and less to become.
Linear with variable interest
Have you opted for variable interest? Then the interest costs always change. And they don’t have to be per definition is becoming increasingly lower.
Transfer business loan
It is possible to take out your business loan. This can be interesting when you can borrow somewhere else at a much lower interest rate. It is also possible to merge multiple accounts with one lender. This makes it easier and clearer for yourself and you only have to transfer one amount per month. Please note that costs can be charged when transferring an account. Find out in advance how high these costs will be for you.
Business credit conditions
Fortunately, the time has passed that only large companies with a high credit rating can apply for a business loan. For smaller companies too, there are now many opportunities when it comes to applying for financing. It makes no difference whether you have a sole trader, BV, NV or a VOF. You can apply for business credit for all these legal forms.
Request business loan without annual figures
When you take out your business loan, you will normally be asked for your annual figures. In this way, lenders can see and assess whether you are eligible for a loan. They often want you to have a business for at least 1 or 2 years. You can prove this by showing your registration date at the Chamber of Commerce. From that moment you officially had a company.
Perhaps you have only been active with your company for a short time. So you can show little or no annual figures. Fortunately, there are also options for applying for a business loan without consulting annual figures. In this case you will need a good business plan and, where possible, collateral for the loan.
Application for financing without a BKR test
The same applies to a loan without a BKR assessment. You do not only get a BKR registration by borrowing money, but you already have the registration when you take out a mobile subscription. This can directly influence the amount of the commercial loan amount. There are also possibilities for obtaining a business loan without a BKR check. In many cases, the loan will be provided via a private individual, and several assessment moments will take place in the meantime as a check.
But whether it is a business loan without BKR assessment or business credit without having to show annual figures, in most cases the following conditions will apply that you must meet:
- The company has been registered with the Chamber of Commerce for at least one year
- The annual turnover is at least 50,000 euros
- You have an accounting and balance sheet to submit to the lender.
Business loan with negative BKR registration
As we indicated before, it is not always checked whether you have a (negative) BKR registration in your name. The BKR keeps loans from private individuals, not from companies. It is often more important to be able to demonstrate good annual figures. But are you jointly and severally liable for your company because you have a sole proprietorship, a VOF or do you work as a freelancer? Then you will have to deal with the BKR test.
And if you have a negative BKR registration in your name, then, of course, you want to prevent that BKR check. New providers have come on the market in recent years. They offer business loans without doing a BKR test. These loans are often a bit more expensive than the ‘normal’ business loans.
What legal form should your company have?
You can take out a business loan as a sole trader, partnership under company or public limited company. In most cases, you are personally liable for the repayment of the business loan. This means that your personal assets, movable and immovable property will be used if, as a company, you do not meet the repayment obligation. Do you have a Private Company? Then this is not the case and you can not be held personally liable.
Take the costs into account
When you take out a business loan it is good to delve into the costs in advance. This way you will not be faced with surprises after concluding and when you are already tied to the contract.
- You pay part of the loan as a monthly installment
- You are dealing with a closing commission if the interest is calculated on the principal (the total) of the loan
- You pay interest on the amount that you have borrowed
It is good to compare different providers. This way you discover where you can get the most favorable interest and which conditions the best suit your company.
Calculate how much you can borrow for business
With most lenders, you will be confronted with a minimum and maximum loan amount. Exactly how much you can borrow depends on a number of factors.
- What is the turnover of your company
- How high can the repayment obligation be?
By taking this into account, you ensure that you do not borrow more than that you can also repay. This way you prevent payment arrears and the subsequent fines.
Not every lender will ask for it, but in some cases: collateral. This serves as a guarantee for the repayment of your corporate credit. This is already requested in the application. Think carefully about what you specify as collateral.
There are also lenders where it is not necessary to give up collateral. Don’t you like the idea? When comparing lenders, keep in mind if they are asking for collateral.
Business lender: Waldcredit
At Waldcredit, they want to help you a little further when you have a unique idea for a new concept or product and are sure that this will be a success! To be able to put this on the market, you need to make an investment. There is only one problem: you do not have enough cash to make this investment from your own company. So you want to apply for a business loan to properly implement your idea. What conditions do you need to meet at Waldcredit? And what should you pay attention to when applying for a business loan?
To get a business loan you must, of course, meet various conditions. The big advantage, however, is that this is very limited with the business loan. No piles of paperwork, but just a loan that is primarily based on your cash flow. If your cash flow is above € 75,000, the chance of obtaining working capital increases considerably. There is no condition in terms of collateral. So it is extra pleasant, no encumbrance of your home, or a lien on your account or things. Just spend the money completely free to spend. That is the advantage of applying for a loan from a specialist company.
What to pay attention to when closing?
If you want to take out a business loan, carefully consider the consequences for your company. With a well thought out plan, you will not be faced with surprises and you can use this to take the company to a higher level. Do not be blinded to what you could do with the financing, but also consider how you are going to pay it off. The company must be able to bear the monthly or annual costs without any problems. The amount of these costs is determined by:
- Amount of the loan amount
It may vary per provider what amounts they make available and what the conditions are for this. The amount depends on your investment, but also on the repayment and the interest amount.
The contract specifies the period over which the amount must be repaid. Based on this, a fixed repayment amount emerges, which in many cases has to be paid monthly.
- Interest rate
In addition to the repayment, you also pay an interest rate on the borrowed credit. Whether the interest rate is fixed or variable is important to view in advance and what the impact is on your cash flow.
Pay close attention to what is laid down in the loan contract about the options for withdrawing the borrowed money, the term of the business credit and whether or not collateral should be made available. You should also look at how high the closing commission is and what the possibilities are if you want to pay off earlier than the term and whether this can be done without penalty.
As you can read, several factors play a role that are important for the lender and for the person applying for the financing. Through our independent comparator you can see which business loans are available and which ones best suit you and your company.