Need business credit? We list all the business credit.
You have a business loan from 2.1% interest.
Want to know more about business credit?
Are you going to request business credit? Then you can choose your house bank, but it is often not wise. It is very likely that one of the other dozen lenders has a better proposal for you.
By comparing a business credit with different providers, you not only get the best business credit, but you also avoid being rejected for a credit. Certain lenders have less strict requirements.
Business credit compare
Business credit 101
Do you want to expand your working capital, buy stock, finance debtors, make a marketing investment or hire extra staff? In all cases you are looking for a good affordable solution.
With business credit you can withdraw money quickly and flexibly. You can withdraw and repay whenever you want. Repayments usually take place on a monthly basis, and repayment free of penalties is not a problem for most providers.
Due to the low interest rates of today, a business credit is relatively cheap, but there are also lenders who still charge high interest rates. We help you find the right business credit.
Am I eligible for a business credit?
Lenders check the creditworthiness of your company before they approve Your application.
Simply put, a lender will estimate whether you can pay the fixed costs from the business credit now and in the future.
It is important to have sufficient cash flow to meet the future repayment obligation.
The conditions for taking out a business loan differ per lender, but we can mention two basic conditions that most financiers use, namely:
- Your company has existed for at least one year
- The turnover is at least $ 50,000 per year
There are lenders who are more flexible. At Current10, your company only needs to exist for six months. There are also lenders who are much stricter, but that is also the power of the compare. You do not have to submit an application to the providers that do not match Your credit requirement.
The chance of success when applying for a business credit for a small and medium-sized company is between 86% and 96%, according to Statistics Netherlands. So don't let prejudices about the chances of getting financing hold you back.
What do you need the business credit for?
The spending target can determine the acceptance standards of the lenders. Before lenders provide the money to you, they not only include the current results in the assessment. But also the future expectations and the results from the past.
The lender must also have confidence in the investment of the borrowed money.
For example, do you use the credit for renovating the business premises? Then the investment must provide a financial benefit for your company. For example, the annual turnover goes up or you can reduce the production costs in the business process.
What is the term of a business credit?
You can make specific agreements about this with the lender, but there are guidelines. The term of a loan often varies between 12 and 60 months. The term also depends on the spending purpose.
A credit with a term of several years is not sensible for supplementing your cash flow. A term of one year or less is then more appropriate. A credit with a shorter term is also possible. You can even get credit for one month. These are usually the more expensive credits.
What costs do you have to take into account?
You pay an average interest rate between 1.5% and 8.9%. The exact percentage depends on Your company, the loan amount and the risk according to the lender.
In addition, take into account a closing commission of 1% to 3% on the loan amount.
In addition, you pay brokerage costs of 0.5% to 1% of the loan sum.
Lenders can charge management and administration costs ranging from 0.5% to 1.25% of the loan amount.
Do you opt for a fixed or a variable rate?
You can fix the interest for the entire term or you can opt for an interest depending on the market interest rate. With a fixed term, you are assured that the interest rate for Your credit does not increase during the specified period. With a variable rate, you benefit from future interest rate falls, but if interest rates rise, Your fixed costs will also go up.
Quick business credit request
Taking out business credit quickly - within 24 hours - is possible. Lenders can charge extra for the speed, but if you need money quickly, there are solutions. Not in a hurry? Then preferably do not opt for an urgent application.
A short business credit request
You can opt for a short business credit with a term of, for example, one month or one year. For this you can opt for a temporary increase in your cash flow. You can respond to this need with a short-term credit.
Opt for a current account?
You can also opt for a current account credit for a temporary expansion of the cash flow. With this type of credit you can freely withdraw money when you need it. It is comparable to a bank account where you can be in the red. The interest is charged on the amount that you are overdrawn on the business account. Is the temporary credit no longer necessary? You can pay off the debt in one go. A current account credit is especially suitable for smaller loans.
How do you quickly get a business loan?
Are you in a situation where you need a business credit quickly or urgently, for example within 24 hours?
The online processes of lenders allow you to quickly take out business credit. In principle, it is possible to take out the business credit within three days and also have the amount deposited into your account. With some providers you even have access to the money within 24 hours.
An urgent application can lead to higher costs. We help you deliver the necessary documents as well as possible, so that as little time as possible is lost.
Business Credit 101: Frequently Asked Questions Answered
What is business revolving credit?
A business revolving credit is a form of business loan, where you have the option of flexibly withdrawing and paying off money. You agree with the lender how much you can borrow within the credit. You can continue to borrow money within the same credit until the limit amount is reached. You often pay off the amount withdrawn monthly.
For example, you take out a business credit for an amount of $ 50,000. Initially, you withdraw an amount of $ 30,000. You can later withdraw a maximum of $ 20,000 until the limit amount is reached. This revolving credit for entrepreneurs offers flexibility, because it is possible to borrow money until a certain maximum is reached.
What is required for a business loan request?
After submitting an application, the assessment of the requested business credit follows. The lender must assess whether they are willing and able to provide the credit based on the acceptance standards.
A lender needs financial documents to estimate the risk. It may concern the next one (digital) documents:
- Financial statements covering several years
- Valuation report if the credit relates to a real estate
- Income tax return of the company
- Legal documents, such as articles of association and a lease agreement of, for example, a machine or a company car
- Digital bank statements
- Liquidity forecast
- Business plan
With online financiers, the bank statements for the past 12 months are often sufficient. They do not require a business plan, annual accounts and liquidity forecasts.
What does the interest depend on?
Lenders apply large differences in interest rates among themselves, but there can also be large differences with the same lender. There are three factors on which the level of the interest partly depends, namely:
- The level of the market interest
- The risk profile of the company
- The collateral of the credit
1. Level of the market interest
Lenders can currently get money cheaply. They can therefore also lend the money cheaply again. In times of higher interest rates, the interest rates on business credit also rise. By choosing a fixed interest rate you can hedge yourself against an increase in the interest rate.
2. The risk profile of your company
The lender makes an estimate of the risk they run. The risk profile is the sum of factors that are included in estimating creditworthiness. You as an entrepreneur are also taken into account in this.
An entrepreneur with several successes would rather provide money to a lender than to an entrepreneur who has just started a business.
The annual figures of recent years are important in assessing creditworthiness. The lender also wants to know what you are going to do with the loan amount. They often request forecasts of, for example, the effects of the investment on the turnover and ultimately the profit of the company.
3. The collateral
For example, you apply for a business credit to buy machines, a company building or a company car. The business asset can then serve as collateral. The bank can sell the collateral if your company is no longer able to meet its payment obligations.
You can also use a business asset or business premises that you already own as collateral.
This construction reduces the risk of the lender. Providing collateral can also result in a lower interest rate, which also benefits yourself.
Why are the differences in interest so great?
There are different types of credit with large differences in interest rates. Traditional banks offer a low interest rate but require a lot of security. Entrepreneurs who fit well within the acceptance standards receive a business credit.
Different rates are also charged for different forms of credit. The differences in interest between banks and alternative lenders are large. The differences between banks are smaller.
Did you know that the outstanding amount of loans with banks has been decreasing since 2012? More often, an alternative lender or factoring and crowdfunding is chosen.
Is a credit not possible or are the costs too high? Then you choose:
- Alternative lenders (are more lenient in the standards, but require higher interest rates on average);
- Factoring (selling your invoices);
- Crowdfunding (borrowing money from a small investor).
- regular business loan
Interest depends on the risk
By providing business loans, lenders run the risk that they will not or not fully get back the loan amount. They charge a risk mark-up to absorb this risk. Be critical yourself. Lenders charge very different interest rates. A difference of a few percentage points is no exception.
So do not blindly choose the lender you do business with more often, such as your home bank. A much lower interest rate results in lower monthly payments or faster repayment of the debt.