What is the interest rate on a business loan?

What is interest rate?

When you think 'loan', you probably think 'interest rate'. The interest rate is the price you pay for borrowing money. It is usually expressed as a percentage and will be a percentage of the amount borrowed. The interest rate can be either fixed or variable and depends on factors such as:

• Borrower's creditworthiness
• Borrower's financial state
• Loan term
• The current loan market

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What is the interest rate on a Qred loan?

At Qred bank, we don't operate with interest rate, but instead with a fixed monthly fee.

The monthly fee on a loan is highly individual for each borrower and depends on a Q-score based on factors such as

• Borrower's creditworthiness
• Borrower's financial state
• Company turnover
• Loan term
• The loan amount

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The monthly fee is the only cost of taking out a business loan with Qred and is only paid for as long as the loan is active.

Pay off your loan early and save money

The way we determine your monthly fee is by looking at the above factors, among others. From this, we calculate a total amount for what it will cost to borrow the money. The total amount is then evenly distributed over the number of months the loan will run for.

However, since you only pay a monthly fee for the months that the loan is active, early repayment allows you to save the monthly fee for each month that you no longer have your loan.

Let's look at an example:

If the loan amount is 120.000 DKK with a term of 18 months and a total cost of the loan of 27.000 DKK This corresponds to a monthly fee of 1.500 DKK

Repayment after 18 months: 

18 months x 1.500 DKK = 27.000 DKK

Repayment after 12 months:

12 months x 1.500 DKK = 18.000 kr

By repaying the loan early, you will have saved 9.000 DKK

What's the difference between traditional banks and Qred?

There is a wealth of options when you enter the loan market. That's why it's good to know what the differences are when choosing a creditor.

The traditional banks

Traditional banks are often able to offer favorable interest rates on your loans, and it can be nice to take out a loan with a bank you already have a relationship with. On the other hand, it can be difficult for small and medium-sized businesses to get approved for a loan, and if you do manage to get the bank to talk to you, the application process is often a lengthy affair. This is partly due to the fact that traditional banks have strict requirements and guidelines that must be met before they can approve a loan.

The process can be a taboo and disheartening experience, especially for new and small businesses, which are particularly vulnerable to financial challenges.

Qred bank

Qred bank is an alternative loan provider that, despite having a banking license, is not subject to the same strict guidelines and requirements as traditional banks. This means that there is generally a higher cost of taking out a loan. On the other hand, the application process is short, which can make the difference between a company's ability to take on new customers, increase its turnover or even just stay in business.

Qred's customer service specializes in loans for small and medium-sized businesses, which means we can meet our applicants and customers with a completely different understanding and guidance.

In short, a loan from Qred can be a decisive factor for a company's existence.

If you want to know more, read our FAQ.

If you need money for cash flow or the holiday season, you can apply today and have the money tomorrow.

If you're still wondering if a loan is the right solution for you, feel free to contact us at support@qred.dk or 89 87 10 06.