Business loans to sole traders

How do I find loans for sole traders?

As a sole trader, you face different challenges to those who are employed or run a limited company, for example. You are often solely responsible for the company and its activities. The need for finance arises in the vast majority of businesses. Especially in a start-up or when your business is growing.

At Qred, we work with talented entrepreneurs in all industries. Many of these are sole proprietorships. When the need for temporary liquidity arises, it's good that we're there. It only takes a minute to apply for our business loans for sole traders, and you can have money in your account the same day. What's more, applying for a loan is completely free and, of course, non-binding. You decide whether you want the business loan by approving it with your BankID.

How long do I have to have had my sole proprietorship to get a business loan?

It doesn't matter how long you've had your business. We also lend money to start-ups. The important thing is that your business has the cash flow to pay back the loan. Never take out a bigger loan than you can handle and think carefully about how you want to use the money.

Which industries can get business loans for their sole proprietorship?

We lend money to businesses in all sectors. Sometimes we get applications from companies in industries we didn't even know existed. We think that's fun!

Loans to sole traders are one of our specialities. We have lent money to restaurants, carpenters, hairdressers, taxis, dentists, lawyers, gyms, consultants, kiosks, pizzerias, cafes, workshops, musicians, photographers, doggy day-care centres, food trucks, bike shops, pilots, masseurs, IT experts, car washes and much, much more. Call us and tell us what your business does!

Sole trader

Sole proprietorship is also called sole trader (this is the more formal name). If you are a sole trader, you are personally responsible for ensuring that all contracts are kept and debts are paid. However, you have to distinguish between your private finances and the finances of your company. The personal number becomes the company's organisation number and the owner is called the holder.Therefore, if you were to apply for a business loan, you would simply give your personal number, which is also your organisation number. However, you may not use the business loan for private purposes.

Requirements for sole proprietorship

If you want to register as a sole trader, you must not be bankrupt, have a restraining order or have an administrator under the Parents' Code. You can register easily on Verksamt.se by following the steps.

Advantages of a sole proprietorship

It is very easy to start a sole proprietorship. You don't have to be 18 years old either, just 16. However, you do need permission from a guardian to start a sole proprietorship before you reach the age of majority. There are also fewer requirements when it comes to accounting. However, the accounting year must always be the calendar year and annual turnover does not exceed 20 price bases, so no annual accounts or reports need to be drawn up.

Disadvantages of sole proprietorship

If the company does badly, all the owner's private assets are used to pay the company's debts. This is a major risk as you could lose your home, vehicles and other assets. The owner is solely responsible for all decisions but can sign a power of attorney which clearly states the rights of the attorney. Be aware that if you live abroad, you must register a manager for the business. However, you retain all personal responsibility even if you are not in Sweden or physically participating in the daily activities.

When your EF gets too big, the answer is usually - limited liability companies

Sometimes you can outgrow your suit. You may have a lot of employees, assignments or otherwise want to grow your business. Then it may be a good time to switch to a different type of company. The most common is a limited company. When the sole proprietorship has become so large that laws and regulations require an auditor, etc., it is advantageous to change to a limited company as a form of business.