Taking out a business loan as a starter?
In most cases it is important that you show your annual figures before you can take out a loan. However, as a starter you cannot of course show figures from the past year. Do you have a good plan and is there potential for a healthy company? Then in many cases you can find financing for your company. So ask yourself why you want to take out a business loan as a starter. In other words: what exactly do you want to do with the money? Make sure that you do not apply for a loan haphazard, but think about it carefully. Request quotes, if necessary, so that you have a clear picture in advance of what the costs are of renting a property, leasing a company car, purchasing laptops, et cetera.
When you submit a financing request, the financing party will often ask you a number of questions:
1. What is your company doing?
2. What do you want to use the loan for?
3. For what reason is it safe as a financing party to invest in your company?
Think carefully about these questions so that you can convey your message clearly and clearly to the financing party. Always take your time, be clear and clear in the wording of your message. In addition, we always recommend that you do not forget to go into detail. Providers would like to obtain as much information as possible. So be transparent when making your business plan . This will help you apply for the loan and speed up the process.
For starters, it is often a good idea to take out a business loan such as an overdraft. With such a credit, a company may be in the red up to an agreed amount. What are the exact conditions? That differs per provider. So always pay close attention to this if you want to apply for a business loan.
How much money can you borrow?
How much money you can borrow differs per financing party. Most lenders work with a minimum and a maximum amount. The amount depends on a number of factors. For example, it looks at what the turnover of your company is and how high your maximum repayment obligation can be. Make sure you do not want to borrow too much money. Borrowing money, costs money. So borrow what you need and don't borrow much more. This way your repayment obligations remain realistic.
Borrow benefits as a starter
If you have just started a business, you naturally want to turn a profit as quickly as possible. To invest in your business, you need money. However, as a starter you do not always have the money you need to achieve your goals. That is why it can be a good idea to take out a business loan. This way you can achieve your goals and your business can grow. Provided, of course, you do everything in the right way.
Another advantage of taking out a business loan is that it is generally many times cheaper than if you have a penalty interest on your business credit card. You will receive such a fine if you have not repaid your money on time at the end of the month. If this is the case, you generally have to pay about 14% penalty interest. As a result, taking out a business loan is soon a lot cheaper for you as a starter.
Business loan risks
Please note that there are always risks associated with taking out a business loan as a starter. Even if you have drawn up such a good plan and you have complete confidence that your company will make a lot of profit: for certain reasons it can always happen that you do not achieve your goals and that you cannot receive your loan within the agreed period Pay. This can lead to unpleasant consequences.
Do you have private debts or financial obligations? In that case, an appeal is often made to your private assets and possessions. Have you received a loan without BKR testing and are you unable to meet your repayment obligations? Then you have to take into account the forced sale of movable and immovable property. It is very important that you always think carefully before entering into a loan agreement for your business. Of course, it always remains a risk to take out a loan, but always consider in advance to what extent it is risky for you as an entrepreneur. Of course you do not want to go under in a short time.
When will I receive my loan amount?
As a starter you naturally want to have money as quickly as possible so that you can achieve your goals as quickly as possible. Fortunately, nowadays you never have to wait very long for your application to be processed. If you submit an application to a bank or a lender, it is usually assessed within a day or at most a few days. Has this application been approved? Then in most cases you will have the amount you requested within 24 hours. However, the process can sometimes be delayed as a starter, as you cannot demonstrate figures and therefore an assessment must be made based on a plan. So keep this in mind.
Tips for taking out a business loan as a starter
Would you also like to apply for a business loan? We have a number of tips for you to make finding a suitable loan a lot easier:
- Use our handy comparison tool. Enter the most important points, such as the amount you want to borrow, the term of the loan and the duration. An overview will then appear of the parties that meet your requirements. Always read carefully what the conditions and requirements are of a party, so that you can make an informed choice.
- Always be careful that you do not borrow more money than you need. So always draw up a comprehensive plan and map out how much money you want to borrow for the financing party and of course for yourself. A tip is to request quotes in advance, so that you know, for example, what costs to take into account when, for example, you want to purchase new laptops, chairs or other inventory. Set achievable goals so that the money you borrow can actually pay back the money you borrow. 3. Always take a good look at the interest rate of the provider. Financing parties advertise that you can contact them for a very low interest rate, but to what extent can you take advantage of this low interest rate? In other words: can you benefit from this low interest rate throughout the period? Always keep an eye out for any snags. For example, a low interest rate sounds very attractive, but this can be a temporary offer. How long do you think you will need to repay the borrowed money? It is always difficult to estimate, especially for you as a starter. On the one hand you can grow very fast with your company, but it can always be disappointing. In some cases you will often see results soon after investing your money in your company or the like. In other cases it will take longer for you to see your investment back. Respond to this by making good agreements with the financier. A longer term can sometimes yield a lot for you as an entrepreneur. Do you find it difficult to make an estimate? Then we recommend that you engage an advisor.
Which provider is right for you?
It may differ per company to which party you can best borrow money as a starter. Don't make finding a suitable party too difficult for yourself and use the handy comparison tool on our website. Indicate what approximate amount you want to pay for a loan and what the duration is. Enter the lead time and indicate whether you have any other wishes, such as penalty-free repayment. When you have done this, the providers will appear that match your requirements. Please note that not every party just goes into business with a starter, so always check the website of the provider carefully. You can always request additional information directly via the party's website.
If your eye falls on a party, you will be redirected to the website of the provider via our website. Do you want to take out a loan? Then you must do this directly via the website of the financing party. Make sure that you do not just take out a loan. You take out a loan for a longer period of time and it has a lot of influence on you, so always make sure that you take out a loan that suits you perfectly. So always check carefully what the conditions of the provider are and always read carefully before entering into a contract.
You can conclude a contract directly through the financing party. We do not arrange the loan, you have to do this yourself. This has the advantage that there is no link between you and the financing party, so you can always contact the party directly for any questions or consultation. Today, you can apply online to most providers. Make sure that you always check your personal details and that you think carefully about the loan amount and the term.
As we have already indicated, it differs per provider how long it takes for an application to be processed. Some providers state online that you will receive all your money within 24 hours of your application. This is not the case with every party, so always check the conditions carefully. Moreover, we strongly recommend that you keep in mind that receiving the money can always be delayed for certain reasons. For example, it may always be that a financier still needs certain papers from you.
Do you have any questions or do you simply want to know more about taking out a business loan as a starter? Then always contact the provider that you have in mind. The specialists are ready to help you so that you know exactly what to expect.
We are an independent party, which means that we do not take sides and we therefore honestly list what the different providers offer. So you know exactly which provider suits you best. As interest rates and terms and conditions can change, we will keep a close eye on these changes and update this on our website so that you do not have unexpected surprises.
As a starter, it is important that you think carefully about taking out a business loan. Yes, it is always a risk because after all, you don't know if your business will achieve much success and to what extent your business will turn a profit or a loss. On the other hand, taking out a business loan can also be great for you as a starter. You can invest the money that you borrow in your company and this can always work out well. In addition, we also recommend that you always check carefully who you are dealing with. The financing party with the lowest interest does not necessarily have to be the party that is best for you. If necessary, contact an advisor to have a better idea of whether it is indeed smart to apply for a business loan. That way you know better whether you are making the right choice.