As a starter it can sometimes be difficult to get a loan. After all, there are no annual figures that you can show, making it difficult for financing parties to estimate to what extent it is wise to work with you. Fortunately, there are always parties where you can go as a starter so that you can increase the spending space on your business account and so that you can take substantial steps with your company.
Take out a business loan as a starter?
In most cases it is important that you show your annual figures before you can take out a loan. However, as a starter you cannot of course show figures from the past year. Do you have a good plan and is there potential for a healthy company?
Then in many cases you can find financing for your company. So ask yourself why you want to take out a business loan as a starter. In other words: what exactly do you want to do with the money? Make sure you do not apply for a loan at random, but think about it carefully. If necessary, request quotes, so that you have a clear picture in advance of the costs of renting a property, leasing a company car, purchasing laptops, etc.
When you submit a financing request, the financing party will often ask you a number of questions:
1. What is your business doing?
2. What do you want to use the loan for?
3. For what reason is it safe as a financing party to invest in your company?
Think carefully about these questions so that you can convey your message clearly and clearly to the financing party. Always take the time, be clear and clear in the formulation of your message. We also recommend that you always remember to go into detail. Providers would like to receive as much information as possible. So be transparent when creating your business plan. This will help you apply for the loan and the process will be faster.
Current account credit
For starters it is often a good idea to take out a business loan such as a current account credit. With such a loan, a company can be in the red for an agreed amount. What the exact conditions are? That differs per provider. Always pay attention to this if you want to apply for a business loan.
How much money can you borrow?
How much money you can borrow differs per financing party. Most lenders work with a minimum and a maximum amount. The amount depends on a number of factors. For example, we look at what your company’s turnover is and how high your repayment obligation can be. Please note that you do not want to borrow too much money. Borrowing money, costs money. So borrow what you need and don’t borrow much. This way your repayment obligations remain realistic.
Borrowing benefits as a starter
If you have just started a business, you naturally want to make a profit as quickly as possible. You need money to invest in your company. However, as a starter you do not always have the money you need to achieve your goals. That is why it can be a good idea to take out a business loan. That way you can achieve your goals and your business can grow. Provided you of course tackle everything in the right way.
Another advantage to taking out a business loan is that it is generally many times cheaper than when you have a penalty interest on your business credit card. You will receive such a fine if you have not repaid your money on time at the end of the month. If this is the case, you generally have to pay a fine of 14%. This makes taking out a business loan soon a lot cheaper for you as a starter.
Risks business loan
Please note that there are always risks associated with taking out a business loan as a starter. Even if you have drawn up such a good plan and have full confidence that your company will make a lot of profit: for certain reasons it can always happen that you do not achieve your goals and that you cannot make your loan within the agreed period. Pay. This can lead to unpleasant consequences.
Do you have private debts or financial obligations? In that case, an appeal is often made to your private assets and assets. Have you received a loan without BKR assessment and are you unable to meet your repayment obligations? Then you must take into account the forced sale of movable and immovable property. It is very important that you always think carefully before entering into a loan agreement for your company. Of course, it remains always a risk to take out a loan, but always consider in advance to what extent it is risky for you as an entrepreneur. Of course you don’t want to go under in a short time.
When will I receive my loan amount?
As a starter, you naturally want money as quickly as possible so that you can achieve your goals as quickly as possible. Fortunately these days you never have to wait very long for your application to be processed. If you submit an application to a bank or a lender, it will usually be assessed within a day or at most a few days. Has this application been approved? Then in most cases you can have the requested amount within 24 hours. However, the process can sometimes be delayed as a starter, since you cannot show any figures and an assessment must therefore be made based on a plan. So keep this in mind.
Tips for taking out a business loan as a starter
Would you also like to apply for a business loan? We have a number of tips for you to make finding a suitable loan a lot easier:
- Use our handy comparison tool. Fill in the most important points, such as the amount you want to borrow, the term of the loan and the duration. An overview of the parties that meet your requirements appears below. Always read carefully what the conditions and requirements of a party are, because that way you can make an informed choice.
- Always be aware that you do not borrow more money than you need. So always prepare an extensive plan and map how much money you want to borrow for the financing party. A tip is to request quotes in advance, so that you know, for example, what costs you should take into account when you want to purchase new laptops, chairs or other inventory, for example. Set achievable goals so that the money you borrow can actually repay the money you borrow.3. Always take a good look at the interest rate of the provider. Financing parties advertise that you can turn to them for a very low interest rate, but to what extent can you use this low interest rate? In other words: can you take advantage of this low interest rate for the entire period? Always pay attention to any snags under the grass. A low interest rate sounds very attractive, but this can be a temporary offer. How long do you think you will need to repay the borrowed money? It is always difficult to estimate, especially for you as a starter. On the one hand you can grow very fast with your company, but it can always be disappointing. In some cases you often see results soon after investing your money in your company or the like. In other cases, it will take longer for you to see your investment. Respond to this by making good agreements with the financier. A longer duration can sometimes yield a lot for you as an entrepreneur. Do you find it difficult to make an estimate? Then we advise you to engage an adviser.
Which provider suits you?
It can differ per company to which party you can best go for borrowing money as a starter. Make finding a suitable party not too difficult for yourself and use the handy comparison tool on our website. Indicate the approximate loan amount you want to pay and the duration thereof. Enter the lead time and indicate whether you have any other wishes, for example, repayments without penalty. When you have done this, the providers appear that match your requirements. Please note that not every party goes into business with a starter, so always check the provider’s website carefully. Any additional information can always be requested directly via the party’s website.
If your eye has fallen on a party, you will be redirected via our website to the website of the provider. Do you want to take out a loan? Then you must do this directly via the website of the financing party. Make sure you don’t just take out a loan. You take out a loan for a longer period of time and it has a lot of influence on you, so always make sure that you take out a loan that suits you completely. Always take a good look at the conditions of the provider and always read carefully before you conclude a contract.
Close the contract
You can conclude a contract directly through the financing party. So we do not arrange the loan, you must do this yourself. This has the advantage that there is no intermediary between you and the financing party, so you can always contact the party directly for any questions or consultations. Nowadays you can go to most providers online to submit an application. Make sure you always check your personal details carefully and that you think carefully about the loan amount and the term.
As we have already indicated, it differs per provider how long it takes for an application to be processed. Some providers state online that you will receive all your money within 24 hours of your request. This is not the case with every party, so always look carefully at the conditions. Moreover, we definitely recommend that you keep in mind that receiving the money can always be delayed for certain reasons. For example, it may always be that a financier still needs certain papers from you.
Do you have any questions or would you just like to know more about taking out a business loan as a starter? Then always contact the provider you have in mind. The specialists are ready for you and help you further so that you know exactly what you can expect.
We are an independent party, which means that we do not choose a party and we therefore provide you with an honest overview of what the various providers offer. So you know exactly which provider suits you best. Since interest rates and conditions may change, we keep a close eye on these changes and update them on our website so that you are not unexpectedly confronted with surprises.
As a starter it is important that you think carefully about taking out a business loan. Yes, it is always a risk, because you do not know whether your company will achieve a lot of success and to what extent your company will make a profit or lose. On the other hand, taking out a business loan can also bring you many benefits as a starter. You can invest the money you borrow in your company and this can always turn out well. Moreover, we also recommend that you always carefully check who you are working with. The financing party with the lowest interest rate does not necessarily have to be the party that is best for you. If necessary, contact a consultant to better understand whether it is smart to apply for a business loan. That way you know better whether you are making a good choice.