Business loans to limited companies

Loans for limited companies - what are the advantages?

By borrowing directly from the limited company, all borrowing costs (e.g. interest, monthly charges and set-up fees) are deductible. The cost of the business loan thus reduces the company's tax burden. Therefore, in some cases, borrowing money from the company can be very beneficial. Read more about how to account for business loans here.

By lending to a limited company, the company pays for the loan, and the costs are indirectly shared between the owners, with large owners paying a larger share and small owners paying a smaller share.

Tips! Read the post Number of young entrepreneurs increasing in Sweden

How do I get a business loan for my limited company? 

Simple! You make a free and non-binding application with us at Qred. Here's how it works: 

1. Application takes 1 minute
2. You will be notified within 1 hour
3. The money is paid the same day

The loan has also...

• No binding time
• No entry fees
• No hidden costs

Loans to start-up companies

Personal guarantees are in principle always required for start-up companies. This is not surprising, as new businesses often have very small capital assets. Unfortunately, it is often in the start-up phase that limited companies need extra money to get their business off the ground.

Business loans to limited companies without personal guarantee

In order for limited companies to be allowed to borrow money, the company owner or another person must often provide a personal guarantee for the credit. This means that you, as the creditor, assume the repayment obligation and the limited company is unable to repay the loan in full.

Unfortunately, business loans without personal guarantees are rare among small businesses and start-ups.

Requirements for limited liability companies

• Private limited companies must have a share capital of at least SEK 50 000 and public limited companies at least SEK 500 000.
• The limited liability company must be represented by a board of directors and, in some cases, a managing director. The Board of Directors is appointed by the General Meeting.
• A limited liability company must have an authorised or approved auditor, unless the articles of association provide otherwise.
• The company must submit the annual report to the Companies Registration Office every year.
• The board of directors must draw up a register of shareholders. The share register is public and must be kept available to the public at the company. The Companies Registration Office does not record who owns the shares.

Good to know about the limited company form

• One or more persons or companies can set up a limited company.
• The name of the joint-stock company is protected throughout the country.
• The main rule is that the owner of shares only risks losing what he has paid for his shares. Shareholders have the right to participate and decide on the company's affairs at the general meeting.

Business loans to AB is our speciality

We only work with Swedish small businesses and loans to limited companies are our speciality. We love working with talented small business owners and making sure you get the funds you need to grow and thrive!

Tips! Read the post Substitute in a limited company - What are the risks?