You need money that you want to invest in your company. For example, you may want to open a (new) building, renovate your current building, purchase additional inventory or something else. If you currently do not have the money to reach your business goal, it is important that you look for business financing. But from which types of loans can you actually choose if you want to take out a business loan?
What corporate loans are there?
When you are looking for a business loan you can choose between a business loan and a business credit. Many people think this is the same. To get straight to the point: this is certainly not the case. There are clear differences between the two forms. We therefore explain it briefly to you, so that you get a good idea of which form of business financing is most applicable to you.
Would you like to make a large investment in your company? Then you often opt for a business loan. This business financing is often suitable for a one-off and large expense, such as the purchase of machines, cars, the renewal of business systems or the opening of a new branch. The economic life of the investment determines the duration of the loan. There is a fixed interest amount, so that the monthly costs remain the same. The repayment is linear. As a result, you have no residual debt at the end of the term. This corporate financing has several advantages. For example, with a business loan you can qualify for a loan with an interest discount. You also have the option of guarantee schemes. This is part of a pension scheme, whereby it is agreed that people are entitled to a minimum guaranteed pension. The big advantage of this is that you cover yourself against any financial setbacks concerning it pension fund.
Then there is the business credit: this form of business financing is a space in the account that is always available. You apply for a business credit primarily for liquidity space or for small business assets. It can only happen when, for example, you have to pay bills, when you have to replenish your inventory or you have to set up a business space. You take out a business credit for up to 1 year at a variable interest rate. The big advantage of a business credit is that within the credit limit that you have agreed with the provider, you can withdraw money flexibly and repay without penalty.
Which loan suits you?
A business loan or business credit: which form of business financing suits you best? Enter your wishes by using our handy comparison tool and contact one of the providers who can help you further. The specialists at these parties will tell you whether you are eligible for a business credit or a business loan and help you further with taking out a loan or credit.