Starting a business is, for many, a big dream, but most often it is one thing that prevents this from becoming a reality and that is the lack of start-up capital. Many people therefore choose to take out a so-called corporate loan to realize their dream. If you are young then it can be a problem to apply for a loan with collateral as you usually do not have much to pledge and therefore the best option is to apply for a business loan without collateral.
You absolutely do not need to take out a loan when starting a business. You can just as well borrow money if you already have one! If you have come a long way then you may want to expand your business with, for example, more products in their range and then maybe the money is not enough. In this situation it can be a smart move with a loan to their company. If your company is reasonably large, you can even use this as collateral for the loan. Then you can get the interest rate down considerably. It’s a big advantage.
What does it take to get unsecured loans?
The following three rules are usually applied here. If you do not meet these requirements, it is with 99% certainty that you will not receive a loan.
1. Your company / company must be registered with the Swedish Companies Agency.
2. The company should not have any registered payment notes for the last 2-3 years. You should definitely have no unpaid debts when applying for the loan either. Whether this concerns unpaid payment remarks or debts with, for example, the petitioner.
3. You must have reached the age of 25. This “rule” doesn’t hit them that hard exactly. Then it is more important to comply with paragraphs 1 and 2.
I meet all the requirements – When is it free to borrow?
Well, it’s not that simple. But at least you have come a long way if you meet the above criteria. The bank or loan institution takes a higher risk when it comes to corporate loans without any collateral, so you and your company will be reviewed manually. You will be given information on how much your total income is. All expenses are also very important. Other factors will also come into play but this is “The big two” if we say so.
Simply explained, the bank or loan institution sees that you are able to repay a loan and you will be approved. It is not more difficult than that.
Where to apply for unsecured corporate loans?
Not all loan companies accept loans without collateral, so you usually have to look around a bit to find good terms. But if you want to avoid this I recommend LendGo. By filling in an application at LendGo you will get answers from several different banks within a few hours !. Then you select the loan that suits you and your company best.
Reading only approves corporate loans if your company has been active for at least 2 years.
Other information that may be good to know
The most important thing to keep in mind is that you have a clear plan on what your business idea will look like, how much your potential income will be on, what expenses will be etc … Before applying for a business loan without security you should simply write a budget together. Another thing that is also very important is that you separate your private finances from your company’s finances. Some have chosen to “bake” everything into one, but you should not do that when applying for a loan.
Another tip is to have as stable and good finances as possible before considering borrowing money. Go through all the papers preferably 2 if not 3 times. Keep track of everything. That time will be worth the gold if you get a loan granted I can promise.