As a start-up company, it can be difficult to obtain corporate loans from the bank. This is not strange, however, as there is no information to show, for example, turnover and profitability. However, it is far from impossible to get a loan for a start-up company. For example, if you have run another company before that shows high turnover and high profitability, it may be grounds for getting a loan granted. Another alternative is to bring in a partner in companies that are well established in the industry, and that can thus work well for you.
Can start-ups get business loans?
There are good opportunities to get business loans even for a newly started company. However, it is important that you see it as a pitch, and that you are well prepared when you apply for your loan. Furthermore, we will go through a few things that may be good to think about:
- Show that you have plans for the future, and what visions you have for your company.
- A clear business plan is also important to have, you should know it as running water.
- In addition, it can be very advantageous to have references that the lender can call.
- What do you want the money for? Show that you have a starting budget. You know how much money you need, and also how to spend it.
- Finally, it is of course very good to have collateral for the loan. Of course, if you have someone who can go to the guarantor for you, it will be easier to get the loan granted.
Benefits of corporate loans for start-ups
There are many benefits to taking out a business loan for a start-up company. On the one hand, it can be very difficult to get a company started without a buffer, it simply needs capital. No matter what company you intend to start. Furthermore, it is important to keep apart your private finances and the company’s finances. Not least if you are several who run the company together.
The difference between loans to a new AB and an individual company
The big difference between loans to limited companies or individual companies is who is responsible for payment. For a limited company, the shareholders are not personally liable for payment. If it is now compared to your own company, those who own the company are personally responsible for the loans taken.