Once upon a time, there was quite a young entrepreneur. He had a dream to start a business. It was new, exciting and unknown. First, he had to have a bank account where he could put in his hard-earned capital. Proudly, the entrepreneur went to the nearest bank to announce that he would open an account for his new business and deposit 100,000 kroner.
With great enthusiasm, he told the banker about his business plans, who asked why the entrepreneur had chosen to come to their bank. Having been named commercial bank of the year earlier this year, the entrepreneur thought it was a rather strange question, but replied that it was his impression that the bank would be a good bank for his business. After 15 minutes of meeting, the entrepreneur was informed that the bank unfortunately did not find the case well thought out and that therefore the entrepreneur could not be approved as a customer of the bank.
The message felt like a cold bucket of water in his head. How could that possibly be possible? He didn't plan to borrow money without putting 100,000 kroner into the bank. Maybe he wasn't a real entrepreneur? Maybe the banker was right? Fortunately, he didn't give up. He found another bank that was more cooperative.
The young man was me. And since then, I've learned that I'm far from the only one who's felt humiliated by the bank. It makes me angry. Especially when you consider that eight out of ten new jobs are created by small businesses and that economic growth is largely dependent on us supporting and developing new businesses. Today – 15 years later – I am what is called a serial entrepreneur. I love creating new businesses and puncturing outdated structures. First the monopoly of the big telecommunications companies was challenged, later Danske Spil's monopoly was abolished, and now it is time to challenge the oligopoly of the banks.
After many years of work, I have established and developed contacts with good and skilled bankers. For new small businesses and entrepreneurs, however, it is hardly open arms waiting in the bank. Especially if you need capital to grow your business.
In principle, you can forget about business loans if your company doesn't have a solid "proof of life" and a turnover in the millions. Unless you're childhood friends with the bank manager, endless documentation is required in the form of business plans, budgets and financial statements. Small and start-up businesses often rely on family and friends to provide the necessary capital.
Banks run year after year with big profits, interest rates are historically low, but the number of loans to small businesses is falling. Glorious! There is fertile ground here for a new business, I thought.
At Qred, we help entrepreneurs grow, and at the same time we give small businesses the good treatment and attention they deserve. It should simply not be harder to get a bank loan than to buy a book online. If you have a good idea, you must have an answer to your loan application in a matter of minutes. My mission is that Qred in the future helps a lot of small businesses, and perhaps at the same time creates a little thoughtfulness at the banks.
Emil Sunvisson, CEO and CO founder
Qred
