Business credit - Apply for business credit for your company

In a world where small businesses face economic challenges, access to capital is not just an advantage - it is a necessity. Business credit offers the financial flexibility and security needed for small businesses to grow and adapt to changing market conditions. Whether it's covering unexpected costs or financing expansion plans, business credit can play a crucial role in your company's growth. 

In this article, we look at what business credit is and how to apply for it for your company - stay tuned! 

In 6 minutes or less, you will learn about how business credit differs from business loans, the interest rate on business credit and what the requirements are for business credit. 

What is business credit?

Business credit is a type of credit known as overdraft or line of credit which gives your small business more financial freedom and movement. It is a line of credit given by a bank or lender where you use the money according to the different needs of your business. 

Business credit can be crucial to a small business's finances, as it allows for various investments in, among other things: 

• Capital goods
• Expansion project
• Managing cash flow in different periods

With the help of business credit, you can ensure that your company receives capital at the right time to support both growth and daily operations.

Business credit vs business loan

Business credit is similar to business loans in that your business receives an injection of capital, but with one major difference - with business credit, you are granted a sum and choose how much of that sum you then use. This is not how a business loan works, where you as the borrower are bound to pay back the full amount of the loan plus interest on top of that amount. With a business loan, you only pay back the money you use, not the full amount you were granted. 

Business credit for start-ups 

For a start-up small business, business credit can be indispensable - as new companies may not always have established creditworthiness or a long business history, it can sometimes be more difficult to qualify for traditional business loans. This can make business credit a valuable and more flexible resource during the early and unpredictable days of entrepreneurship. 

Interest on business loans: what does it look like?

In the case of business credit with traditional banks and lenders, interest is only paid on the money you use, unlike a business loan where interest is paid on the full amount of the loan. 

At Qred, we do things a little differently - instead of interest, you pay a fixed price each month for your business credit. In other words, we have no interest or other costs, but you pay the same fixed fee every month. Business loans with us have no fixed term, and you only pay for the months you have the loan. 

How to apply for a business loan with Qred

Online business credit with Qred is quick, safe and easy. Applying for a business loan is a smooth process that can be summarized in three simple steps:

1. Apply in one minute: Quick and easy application process. The application is free of charge and non-binding, and we do not take any UC on you as an individual.

2. Get a response within an hour: After you apply, we'll get back to you within an hour - you'll be told how much credit your business is granted.

3. Same-day payout: Sign with BankID and receive your money the same day.

Borrow from €50,000 up to €5 million.

Common requirements for business credit

When applying for business credit as a small business owner, it is important to be aware of some basic requirements that lenders often impose. These requirements may vary slightly, but here are the most prevalent among traditional lenders:

• Registered company: The company must be officially registered and have a valid organization number.

• F-tax certificate: the company must be registered for F-tax.

• Length of operation: Many lenders require that the company has been active for at least six months to a year.

• Financial health: The company should have a stable financial history with no debts with the Swedish Enforcement Authority. Creditworthiness is usually assessed through a credit report.

• Turnover requirements: Some lenders may impose requirements on the company's annual turnover, which often has to exceed a certain limit.

It is also common that the owner or CEO of the company may have to act as guarantor, which means personal financial responsibility if the company cannot repay the credit.

These requirements aim to ensure that the company is considered capable of managing and repaying the credit, thus reducing the risk for the lender. 

Small business with Qred

Business credit can make your small business run more smoothly by increasing the freedom of movement of money - at Qred, we understand this unique need of small business owners. That's why we offer tailored financing solutions that are fast, flexible and without complicated terms. Our aim is to make finance simple and accessible, so you can focus on what matters most - running and growing your business. 

Whether you need to read our guide on selling invoices, getting a business card, or learn more about entrepreneurship with Qred Academy, we're here to help you on your journey. Get started with Qred today, and good luck with your business!

Questions and answers on business credit

What is business credit?

A business loan is a type of financing that gives companies access to a predetermined amount of capital, which can be used when needed. It is a flexible solution to manage cash flows or finance investments.

What does it take to get business credit?

To obtain a business loan, the company usually has to meet certain criteria, which usually include a stable financial history, length of time in business, and often a check of the company's creditworthiness. There may also be requirements for a minimum turnover and that the company does not have debts with the Swedish Enforcement Authority.

What does a business loan cost?

The cost of a business loan depends on the lender. With Qred, you only pay a fixed monthly price for the business loan, while other lenders may sometimes charge both interest on the amount drawn down and any administrative fees.