Business Loan – Take out a loan for entrepreneur
It’s not easy to run a business, often the best business ideas fail due to insufficient financial resources. In contrast to employees or civil servants, the income of entrepreneurs can fluctuate greatly depending on the industry, which can be seasonal, for example, as in the catering sector.
Loans for entrepreneur
If a bank grants a loan to an entrepreneur, it is important to carefully examine the business situation of the prospective customer before granting the loan and to assess its future payment strength. The bank’s requirements for the applicant include, for example, that the applicant company has existed for at least two years and that the net annual turnover is at least EUR 30,000. The documents to be brought along are the last two income tax notices and income tax statements, profit and loss accounts or the accounts of the current and past financial year and a valid ID card. Unfortunately, companies from the catering industry that are not doing well economically rarely get a loan. Companies that operate internationally require loans in the millions, which usually requires several banks to join together so that the loan capital can be raised. In this case one speaks of a syndicated loan.
Different types of credit
As for the different types of credit that banks give to companies, there are similarities as well as some differences compared to the types of credit that are offered to private customers. For example, no overdraft facility is granted to companies, but the credit line granted on the checking account is referred to as an overdraft facility. Otherwise, the overdraft facility and the overdraft facility are functionally very similar. There are also some loans that are specifically designed for companies and the self-employed.
This includes, for example, the start-up loan as a classic loan for companies. This loan is granted to companies, freelancers, the self-employed and other corporate customers who are just starting out in business. Most of the time, start-up loans serve to make the necessary investments that are necessary in the course of opening a business or starting a business. The start-up loan is just one example of many loans that banks give to companies. This also includes the overdraft, the investment loan or a real estate loan.