Business loans to limited partnerships

Limited partnerships are a common Swedish form of company and are described more as a kind of commercial partnership. Qred, of course, provides loans to limited partnerships.

What is a limited partnership?

A limited partnership is, as previously mentioned, a type of partnership in which you must have at least two partners, one of whom must be a limited partner and one a general partner. This type of partnership is fairly common among law firms, for example, where a form of partnership is often used to reward loyal employees. A major difference between limited partnerships and partnerships is that personal liability is largely limited for limited partners, while the general partner has financial responsibility for the debts of the business. However, a legal entity can be a general partner, which is a major advantage.

Advantages and disadvantages of limited partnerships?

Limited partnerships are a good way of limiting the financial responsibility of a group of shareholders who are also expected to share in the company's profits. In addition, since the general partner of the partnership can be a legal entity, it is possible to transfer the financial risk of running the partnership entirely to a limited company, for example. A limited partnership is also relatively easy to administer. However, a large limited partnership with only natural persons as partners requires an auditor. We generally recommend a limited liability company as the legal form of the company.

Is it easier to get a loan for a limited partnership?

At Qred, when we review an application and do our risk assessment, we look at several factors, the most important of which is, of course, what your business does and how it will develop in the future. We can't say offhand that it's easier to get loans for limited partnerships, but that's certainly not a disadvantage.

We help all types of companies. What your business plan and future look like is more important than what last year's numbers looked like. The more we have to consider, the better offer we can often make. So always remember to supplement your application with the documents you have, even if it's not a requirement.

Read more about limited partnerships

Companies Registration Office on limited partnerships
Office about limited partnerships
Accounting tips