Not only individuals, but also small businesses have to take a larger amount of money every now and then to make some business-specific important purchases.
Anyone working with low profit margins and reinvesting the capital in their own company will sooner or later not get paid for a loan.
Meanwhile, many banks offer a loan for small businesses. The loan is an important financing element in a well-regulated company.
Almost every company has a mix of equity and credit to create a healthy balance. As cheap as a loan is currently available in Germany, the borrower is so almost cheaper away, as with the taxes he would have to pay a larger amount of equity.
Where can you find cheap loans?
In order to survey the large number of potential lenders, whether banks or even state economic development agencies, the Internet offers a unique source to compare different types of loans in terms of their duration, cost and required collateral.
However, in general one can observe that, with suitable collateral and, in the best case, solvent guarantors, many banks and credit institutions will grant such a loan. Many sites offer different loan types to compare for free and to find out the best conditions for their own small business.
A timely comparison is the best way to ensure good conditions and to go well prepared for the application. In principle, many variables can be adapted exactly to the needs of the trader. In particular, the level of payment and the duration of the loan are often negotiable.
How do I apply for a loan?
Although today’s transactions are fast and secure over the Internet, the same collateral and evidence banks would expect from credit seekers can still be provided. Thus, various evidence must be provided that it is a legally registered small business.
Also regular business figures are often called in order to have an overview of the development of the solvency of the company. Among other things, this includes the last tax assessment as well as a standard business evaluation. Highly automated online banks are happy to help with easy-to-use tools and help them choose the right loan.
Different types of loans
If you are interested in a small business loan, you can choose between several different models. The individual products differ in terms of purpose, groups of people, availability, lending volume, collateral and donors.
A high number of consumer loans has a lending volume of € 5,000 to € 50,000. If the upper limit of the respective loan is € 5,000, it is a small loan. Most financing products are not tied to a specific purpose.
However, you should inform yourself in advance exactly about the respective modalities, so as not to take any risks on this point. Increasingly popular is the online loan. These are installment loans or consumer loans, which are completed over the Internet.
A major advantage of this type of loan: The processing is very quick, so these models are also referred to as instant, direct, express or quick loan. In the category of loans without an earmarking also the credit without Schufa falls. Since there are unfortunately some black sheep in this area as well, you should first check each provider comprehensively for its seriousness.
Other loan types
The installment loan is also in great demand. As the name implies, the loan is repaid to the creditor in monthly installments.
The interest rate and the amount of the payments usually remain the same over the entire term. More specifically, these are installment credits in which the rate is composed of interest and redemption portions. The interest, ie the annual percentage rate of charge, is calculated on the remaining credit amount. The longer the contract period progresses, the more the remainder of the debt goes down – and the debtor has to pay less interest. To compensate for this, the repayment share increases.