Business loan, everything about borrowing business money!

As a (starting) entrepreneur, you may need additional financing at some point. To get extra credit, you can apply for a business loan from, for example, Rabobank. However, it is wise to compare business loans from multiple banks. But how can you take out a good business loan with a low interest rate?

Business loan with the lowest interest rate

If you want to borrow money quickly for business, you automatically look for a business loan with the lowest possible interest rate. Although this is quite logical, there is a good chance that you will end up with more costs. If you are going to take out a business loan , it is therefore very wise to compare business loans and also read the conditions of each business loan.

What requirements do you have to meet to be able to borrow business money?

As an entrepreneur you must be able to meet the requirements that banks set when taking out a business loan . If this is not met, there is a chance that the bank will not provide business credit. On the other hand, the bank may offer a business loan , but with a much higher interest rate. Although banks are more cautious these days and want to take as little risk as possible, it is not impossible for a starting entrepreneur to borrow business money from the bank. To easily qualify for a business credit, it is necessary that you:

  • have a clean BKR past
  • are prepared to provide your home or business as collateral for a large business loan
  • can demonstrate through evidence and facts that you are able to repay the financing

If you can meet these requirements, there is a good chance that the bank will grant you a loan.

Take out a business loan

If it appears that you can meet the requirements, you can see which business loan is suitable for you. The following is also taken into account:

  • Is it a small start-up company, a medium-sized company or, for example, a very successful company that needs additional financing to continue to grow?
  • the amount to be borrowed for business determines, among other things, the interest rate for business lending. This is also the case with a private loan and is actually self-evident
  • the term of the amount to be repaid including interest
  • the repayment period. Repayment is usually possible per month, quarter or even another agreed term. (Also ask if there is a possibility to temporarily ‘stop’ the payment, if necessary)

Business credit protection

If you want to take out a fairly large business loan , it may be wise to see whether you can insure yourself when ‘difficult times’ come, so that you do not get into trouble.

Business borrowing with BKR

Nowadays there are lenders from whom you can borrow business money with a BKR code, but of course at a particularly high interest rate. It is therefore only advisable if you really need the financing and are sure that you can easily pay it off.

Is it not even possible to borrow money without BKR?

It may happen that you cannot take out a business loan even without BKR coding, because you simply do not meet the bank’s requirements. Is there no option at all to take out a loan? Yes, even then there are possibilities. Inquire at various banks about a ‘Guarantee Loan’ and its options. You may be able to take out a business loan this way. Here too, pay attention to the conditions and whether you are able to repay the loan amount including interest within a predetermined period.