As an entrepreneur, continuous improvement is essential to success, but it often requires improvements that the company cannot pay out of pocket. At this point, start-ups and companies planning larger investments, such as the purchase of machinery or equipment, need a capital injection to achieve their stated goals.
Different types of entrepreneurial loans can help you with this: learn in detail what opportunities you have in the market and the terms and conditions for applying for a loan for your business.
These are the most important features of an entrepreneurial loan
No problem, if your business has just been established, one of the types of corporate loan will surely be available to you. For example, Micro Loan can also help start-ups who do not yet have a closed business year, but the same type of credit is available to small and medium-sized businesses.
Some loans provide opportunities for sole proprietors who want to develop or expand. Growth loans provide sufficient capital to finance larger investments.
Here are some key features of business loans :
- We distinguish by maturity
- short-term (less than 1 year)
- and long-term (over one year) corporate loans.
- The loan target can be similar to a retail loan
- free use
- An entrepreneur loan for collateral purposes may be:
- mortgage ,
- loans with other tangible assets
- unsecured loan
- Disbursement currency may be:
- denominated in foreign currencies
- The interest may be the same as for loans taken by individuals:
- In addition to the offers available on the market, there are so-called subsidized loans , which means that the state guarantees favorable terms in the form of interest rate subsidies or source-based subsidies.
In the corporate credit market
You can choose from a variety of loan types, depending on what you want to achieve with external financial help:
Overdraft is a freely available loan, no real estate collateral is required to apply. In this form, you can usually request between $ 500,000 and $ 50 million. Because credit institutions usually provide an overdraft facility for 12 months, it is a good idea to aggregate your business’s revenue and expenses for the year before applying, and determine how much credit your business will need. It is not worth betting more than that.
The working capital loans, as the name suggests, you can spend the undertaking various rotating devices: they can be of different stocks, receivables, securities and cash. In some financial institutions, working capital loans can even be used to redeem a loan. A working capital loan can usually be applied for a term of 1-3 years, from HUF 1 million up to HUF 100 million. Real estate coverage is not required to claim the current asset.