What is the interest rate on a business loan?

What is interest on a loan

What is an interest rate?

An interest rate is the percentage that you pay on your loan and depends, among other things, on how much risk the lender takes when they give you a loan.

Fixed and variable interest rates

Fixed rate: determined by the bank based on a number of factors such as current interest and exchange rates, loan term, etc. and is static throughout the loan period. The fixed rate is typically higher than on a variable rate loan.

Variable interest rate: is usually cheaper than the fixed interest rate that you can get at the same time. Unlike the fixed rate, it can be changed during the term of the loan.

Loans from Qred Bank

A loan from Qred Bank is a bit like a fixed rate loan. Similar to the fixed rate, with our fixed monthly fee, you know exactly how much you'll pay each month.

How is my monthly fee calculated?

At Qred, all applications are processed individually through a credit assessment and an overall assessment of your and your company's financial health. The overall assessment determines how much you can borrow and your monthly fee. As we have customers with loans of both 50,000 DKK and 1,500,000 DKK, it is therefore not possible to give an estimate of what a monthly fee might be for you.

If you would like to get an estimate, you are welcome to call us. Based on a series of control questions, we will often be able to help you with an estimate.

What information and documents do you need for a credit assessment?
To perform a thorough credit assessment, we need the following:

• Annual statement
• Bank statements

If you want a quick response, make sure that all requested documents are submitted and all requested information is filled in.
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Can I increase my loan amount?
The short answer is yes. Make sure you pay your invoices on time, as this is, among other things, a deciding factor in whether you are able to increase your loan. With good payment behavior, there is a possibility that you can increase your loan already after three months.

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Why choose Qred Bank?

Ourmission is to provide entrepreneurs with a banking experience that is different from the one they often get at traditional banks. Entrepreneurs build the future, and we support them.

Access to capital can make or break your ability to take on more customers or get hired for a larger project. That's why we've made sure the money is disbursed within 24 hours of you signing your loan contract.

At Qred Bank, we have chosen to operate with a fixed monthly fee. This means that you only pay installments on your business loan and a fixed monthly fee. You also avoid unpredictable interest rates or hidden fees.

It can happen to the best of us. Sometimes expenses pile up and it can make it difficult to pay on time. Call us as soon as you know you can't pay on time and we'll do what we can to find a sustainable payment solution.