Corporate loans are easier than ever
It should not be cumbersome or slow to get a business loan for running a business or starting a business. Qred offers corporate loans to small Danish companies.
How to get a business loan
A number of Danish small and medium-sized enterprises are experiencing problems in being approved for a corporate loan from the traditional banks. The same applies to start-ups. This is because the risk of lending money to small businesses is high – and at the same time the earnings on the smaller loans are low, which is why it is often not worthwhile for banks to lend money to small businesses, and therefore they only offer corporate loans to large well-established companies.
Qred is offering a new type of corporate loan, and we focus exclusively on small Danish companies. It is quite easy to apply for a business loan, you get a response to your loan application within an hour, and payment of the loan usually takes place within 24 hours.
1. How much does a business loan cost?
As it has become difficult for smaller companies to borrow money from traditional banks, more loan providers have also come onto the market. And the price is quite variable. Interest rates are different, just as there can be big differences in fees and charges. And the price will always depend on the credit rating of your business. The better the credit rating, the lower the risk involved, and thus the interest rate or tax will also be lower.
At Qred, we do not have interest on our loans, but instead a fixed monthly fee. And an application is also not binding. This means that when you get our loan offer, you get the full overview of what it will cost you to borrow money with us. As a result, you risk not agreeing to a loan offer without insight into the costs associated with taking out the loan.
2. Explore different alternatives
Bank loans to businesses are the option that most business owners have as their first priority. The problem is that traditional banks are only interested in offering loans at very little risk and that they have old systems and procedures which are very expensive. Offering small businesses a loan is rarely a profitable business for the bank, which would rather lend hundreds of millions or billions to large companies. Unfortunately, since the financial crisis, lending money to small businesses is more difficult than ever.
Billing of invoice payment can be an option if you have a lot of bills and where the payers have a good credit rating. If you are a small business and the bills are with other small businesses or individuals, it is more and more expensive to use billing.
Equity is a good option if you need money in the long run and you haven't started the business and can demonstrate a stable cash flow.
Online loans are a smooth and simple alternative if your business needs to borrow the money and the amount is not that large. Often it is very easy to apply for the loan and you will be notified quickly. Qred promises you answers to your loan application the same day.
3. Corporate loan interest rate
The cost of corporate loans differs greatly depending on who you turn to. Interest rates are important, but the pitfalls are many. In addition to interest rates, there are a number of expenses that the various lenders add to. Are are special things you should be aware of:
Interest on business loans is usually expressed as a percentage of the outstanding loan. Interest rates on business loans vary widely, but often it is 10 to 20 percent per year.
Setting up tax is a charge that most lenders take to provide a loan. This can be up to five percent of the loan amount.
The notification fee is a charge for sending the invoice. It can vary between 30-60 DKK per month.
Charge for repaying the loan early is a fee you pay if your company wants to pay the loan back early. It can be about very high costs.
Application fee is a charge that rogue actors take just to apply for a business loan.
Monthly tax is a charge that Qred takes every moon. Qred has only a fixed monthly fee and no interest, no establishment fee, no charges or to repay the loan early and no hidden fees.
4. Make a repayment plan
Once you've explored the options, it's time to think about the next step – how the loan will be repaid? Make a simple calculation. There are plenty of templates online, but unfortunately they can be hard to understand. It doesn't have to be sophisticated, but it's important to think about the future situation of the company. Make sure you have a small margin on your calculations and consider different options. For example, what happens if you lose a customer or if a project is delayed?
The better prepared you are, the more likely it is that your business will be granted a business loan and be successful in the future!