Business loans for start-ups and new businesses have traditionally been difficult to obtain. Since 2015, our primary goal has been to help as many small business startups as possible with the right kind of financing.
So it doesn't matter if you have a new or old business. Small is bigger doesn't matter either. So forget years of history, balance sheets, profit and loss statements and complicated business plans that the bank wants to see. At Qred, we care about you and your future plans. That's also why we don't take UC from you as a private individual. We use Creditsafe and only we (Qred) and you see that credit report - no other banks or lenders!
We offer all types of companies business loans without UC. Here's how a loan through Qred works:
The loan has...
Welcome to submit an application!
Apply for a business loan for a start-up
Perhaps you are thinking of starting a business? Or maybe you've just started a new business? Borrowing money from the bank for a start-up is unfortunately not easy. On the one hand, the risk is highest at the beginning, before the business is up and running, and on the other, the amounts are quite small. Banks like low risk and lending large amounts to large companies. It is simply not worth the bank's time to spend on start-ups.
Tips! Read the post Small businesses find it hard to get bank loans
A start-up company means a company that has not yet started a business or has not submitted its first financial statement to the Companies Registration Office. Some banks require even three financial statements for the business not to be considered a start-up. We at Qred think this is wrong, as the first three years of a business are the most difficult. Then you may need temporary injections of capital to grow.
Before you apply for a business loan, you should do your homework. What will your business do, how much money do you need to get started? How much can you pay back per month? You should think this through carefully so that you apply for the right amount and can clearly explain how the loan will be repaid.
Tips! Read the post Small businesses more profitable
Find out more about how you can finance your business here.
In our Qred score, like many other banks and lenders, we view limited companies as a positive. They have a share capital and there are usually several people in the company. You can also add someone to personally vouch for you when you apply for the loan. This is called a guarantor and our requirements for a personal guarantor are:
Payment defaults do not stop us from issuing a loan, but they can be a barrier. You may be offered a lower amount at a slightly higher price before you have made any payments.
As a start-up sole trader (SE), it can be difficult to find the right type of finance. Often you have a slightly smaller business that is seasonal or sensitive in other ways. Banks have traditionally found it difficult to offer lower-rate loans to sole traders. It has simply not been profitable enough. We at Qred think this is wrong and want to help the smallest and start-ups with finance. We do this by offering smaller loans and in this way we get to know each other and can increase the loan in the long run.
Another option is to use our business credit card. That way you avoid private expenses and complicated bookkeeping. It's all on one invoice and perfect for everyday expenses and purchases.
As with any other loan issued by Qred, it is advantageous if you can get one or two more people to act as personal guarantors for the loan. In other words, you are personally liable for the loan. If you and the other person are in good financial shape, this will usually make it easier to pay both the amount of the loan and the fee for the loan.
That said, Qred can help all types of companies with financing. We very much welcome the fact that there are two people sharing the responsibility between a limited partner and a general partner.
When you apply for credit for a start-up company, a credit check is often carried out on the company. It is very rare for the credit rating to be particularly high, as the credit reference agencies have no history on which to base their assessment. As a business, you earn a high credit rating by consistently making stable and predictable sales and profits and avoiding any kind of payment history.
At Qred, we have our own Qred score, which takes into account the business idea and the people behind the company. Call our officers for a professional assessment and get a quick credit decision.
Almost every day someone calls Qred and asks if they can borrow to finance their start-up company. The first thing we ask is whether the company is registered with the Swedish Companies Registration Office (i.e. that there is a valid organization number). We then try to find out where the business is in its development and what its needs are. Business loans are an important part of financing, but there are often multiple sources of funding that you should consider in order to put together a solution for your business that can help you meet both short-term and long-term needs.
There are some obvious questions you need to ask yourself before you start raising start-up funding, namely:
Once you have an idea of your needs, there are some options you should consider to get the capital you need to get started:
Many entrepreneurs don't want to mix their personal finances with their business finances. This is a good idea, but in the beginning you will have the best insight into the business idea and its potential, and therefore you are the best judge of risk. Therefore, you should always be prepared to invest some of your own money to get started. It is also a strong signal to banks and other lenders that you believe in your business idea. Don't forget that 99% of companies are financed with their own funds!
The traditional major Swedish banks rarely lend money to small businesses, especially start-ups, unless the owners already have a long track record and a strong private relationship with the bank. They often require collateral such as real estate or personal guarantees. Typically, a traditional bank loan can be set up with a long repayment period of 3-5 years, but often requires a long process with high collateral requirements and in some cases expensive set-up fees.
Another option is factoring, which is now often used as an alternative or complement to traditional business loans. Factoring works well for small amounts and shorter periods of time and is usually quick and easy, but usually more expensive than business loans.
The fastest option is now a digital service that expanded in the wake of the financial crisis, when banks largely stopped lending to small businesses altogether. These digital players usually have lower costs than the big banks and have simplified the application process so that it can be completed in minutes online. Traditional factors such as credit rating and business performance still matter, but new social factors such as the quality of a website, online traffic, social media presence and ratings on comparison websites are combined to get a better picture of the business and its potential to repay the loan.
What does it take to get a loan application approved? Typically, these alternative lenders will want to see a well-managed personal financial situation, to understand the business idea, to understand why the loan is necessary and how it will enhance the business. A good credit rating (no debt balance, no payment defaults and stable income) increases your chances of getting a loan.
Starting your own business is easy, but getting a profitable business up and running without capital can be even more difficult. After all, marketing, machinery, premises and employees cost a lot of money, but are crucial to the future of the business.
So, in order to grow your startup, you will need to get capital into the business. Fortunately, there are a variety of funding options to explore if you are unable to invest your own money.
Here are three ways to fund your startup and their advantages and disadvantages.
Business loans are the most common form of business financing today. With a business loan, companies can borrow lump sums that they can then use for optional investments, such as machinery, premises or employee salaries, to grow their business.
The loan is repaid according to a fixed repayment schedule, either daily, weekly or monthly, together with interest and other charges.
There are generally two different types of business loans:
Venture capital is a popular form of investment whereby individuals or companies invest money in start-up businesses. In exchange for your capital, they get a share of the company, which means they will share in future profits.
As the name suggests, this is a high risk form of investment. Therefore, it is mainly suitable for start-up companies with high growth potential in the near future. Statistics from Growth Analysis show that over SEK 3.3 billion was invested in Swedish portfolio companies in 2018, which is an increase of 43% compared to the previous year.
There are many platforms where companies looking for venture capital can find suitable investors, such as Connect Sweden and ALMI Invest. You can also find investors in your own personal network or with the help of an incubator.
Crowdfunding - or mass financing - involves ordinary individuals investing a small amount of money each to finance a business or project they believe in. The concept originated in the US, but has become a global phenomenon in recent years.
According to P2pmarketdata.com, Sweden ranks 20th in the list of top countries in crowdfunding with an annual growth rate of 36.58%.
In return for their money, investors may receive a reward, such as priority access to the service or product they invested in. In some cases, they may also receive a share of the company's profits, which works in the same way as venture capital.
When it comes to crowdfunding, you have many different platforms to explore, but two of the most popular are Kickstarter and FundedByMe.